H.I.G. Europe has completed the simultaneous acquisitions of ARMetallizing, a Belgium based manufacturer of metalized paper from Ackermans & van Haaren, and Vacumet Paper, a Massachusetts based manufacturer of metalized paper from Scholle Corporation.
The combination of ARMetallizing (ARM) and Vacumet Paper will be a global market leader in metalized paper for use in the beverage and consumer packaged goods markets. The group’s metalized paper is currently used as the base paper in beer labels, spirit labels, food packaging, consumer product packaging and gift wrap, and can be found on many household brands such as Becks beer, Lurpak butter in Europe, and Coors Light and Hasbro in the US. With revenues in excess of €120 million, the group will supply clients globally from 3 manufacturing facilities in Belgium, Italy and the US (www.armetallizing.com) (www.vacumet.com).
“The simultaneous acquisitions of ARM & Vacumet reinforces H.I.G.’s ability to execute on complex transatlantic transactions. Over the coming years, Paul and his team will leverage H.I.G.’s presence across Europe, the US and South America to grow the business organically and through bolt-on acquisitions,” said Dr. Matthias Allgaier, Managing Director of H.I.G. Europe.
The combined company will be led by ARM’s CEO, Paul Van Emmerick and CFO, Martin Raeymakers, who will both retain a significant shareholding in the business. “We are very pleased to have completed the MBO of ARM and the simultaneous acquisition of Vacumet Paper with H.I.G. Europe. With H.I.G.’s backing, we have already taken a major step in being able to supply our customers’ global packaging needs,” said Mr. Van Emmerick.
H.I.G. Capital specializes in providing capital to small and medium-sized companies and invests in management-led buyouts and recapitalizations of manufacturing or service businesses. Since its founding, H.I.G. has invested in and managed more than 200 companies and the firm’s current portfolio includes companies with combined revenues in excess of $8 billion. H.I.G. Capital has more than $8.5 billion of equity capital under management and is based in Miami, FL and has other offices in Atlanta, GA; Boston, MA; San Francisco, CA; London, UK; Rio de Janeiro, Brazil; Hamburg, Germany; and Paris, France (www.higcapital.com).
“Paul and his team have done an outstanding job building ARM into the #1 player in Europe; through the acquisition of Vacumet, we have now created the global market leader in a niche segment of consumer packaging. We look forward to supporting Paul and Martin in expanding ARM’s global footprint and extending the company’s product offering into adjacent consumer packaged goods markets,” said Mark Kelly of H.I.G. Europe.
This transaction represents H.I.G. Europe’s 21st new European investment since the beginning of 2011.
© 2012 PEPD • Private Equity’s Leading News Magazine • 9-18-12