Irving Place Capital and Oaktree Capital Management have entered into an agreement to sell their portfolio company, Chesapeake Corp., a supplier of specialty paperboard packaging, to The Carlyle Group.
Chesapeake is a supplier of value-added specialty paperboard packaging, including folding cartons, leaflets and labels, for the pharmaceutical, confectionary, and premium drinks markets. Founded in 1918, Chesapeake is headquartered in Nottingham, UK and has 38 facilities located throughout the UK, continental Europe, the United States and Asia (www.chesapeakecorp.com).
Irving Place Capital and Oaktree Capital completed the acquisition and recapitalization of Chesapeake in May 2009. Since acquisition, Chesapeake executed a strategic and operational plan that included a capital investment program to expand capacity and enhance manufacturing capabilities. The company also completed three add-on acquisitions during this period to expand its technical capabilities and geographic presence.
“We were excited about Chesapeake’s potential when we first identified the company and are appreciative of having the opportunity to support the company through an important stage in its evolution,” said Phil Carpenter, a Senior Managing Director at Irving Place Capital. “The business is well positioned for continued success, and we wish our management partners and the employees the very best as they lead Chesapeake on to its next phase of growth.”
Irving Place Capital invests in buyouts, recapitalizations and growth capital opportunities. The firm focuses on making control or entrepreneur-driven investments. Since its formation in 1997, Irving Place Capital has been an investor in 60 companies and manages over $4 billion, including its current $2.7 billion institutional fund. The firm is based in New York (www.irvingplacecapital.com).
“It has been a pleasure to have been a part of helping Chesapeake reshape its capital structure, strategic plan and operations throughout the past four years. We would like to thank Mike Cheetham and his outstanding team for all of their hard work in transforming this business during our ownership,” said Jordon Kruse, Managing Director at Oaktree Capital Management. “We believe the company is now set to continue along a strong growth trajectory, and we wish the company and management team continued success as they enter this next phase.”
Oaktree Capital Management makes investments in distressed debt, real estate, high yield and convertible bonds, specialized private equity, emerging market and Japanese securities and mezzanine finance. The firm has over 700 employees and $79 billion in assets under management and is headquartered in Los Angeles (www.oaktreecapital.com).
Irving Place Capital and Oaktree Capital were advised on the sale of Chesapeake Corp. by Barclays.
013 PEPD • Private Equity’s Leading News Magazine • 7-8-13