NIBC supports Deutsche Beteiligungs AG in the management buyout of Infiana GroupCorporate News -
NIBC Leveraged Finance in Germany, alongside a club of banks, provided a senior debt package to support the buyout of Infiana Group (formerly known as Huhtamaki Films) by German private equity firm Deutsche Beteiligungs AG (DBAG). The transaction took just eight weeks to complete.
Infiana Group – previously a division of Finnish Food packaging company Huhtamaki Oyj – is a leading developer of plastic-based release films used mainly for hygiene and health applications, such as the outer layer of babies’ nappies and packaging for female hygiene products. Its films and foils are also used widely in the construction industry. Since 15 January it has been operating under the new name Infiana Group.
Huhtamaki – known for making paper cups for McDonald’s – decided to divest the Films business to concentrate on its core business of paper-based packaging. NIBC was invited to join the club deal as mandated lead arranger by client DBAG and debt advisor Altium specifically because of its “strong industry position, track record in leveraged finance, speed, reliability and deliverability”.
Unlocking growth potential
DBAG is one of Germany's leading private equity companies. It invests directly in mid-market companies, which form the backbone of the German industry and are often leaders in their markets. NIBC previously supported DBAG with its purchase of German bakery chain Unser Heimatbäcker.
Private equity financing in transactions such as this management buyout support the future growth of what was a non-core business and releases its full potential.
“Growth for Infiana lies in emerging markets, where the use of hygiene and health products is increasing rapidly. The company already has manufacturing plants in Thailand and Brazil,” says NIBC’s Victor Ruitenberg, head of Leveraged Finance in Germany. “It’s a very attractive business with huge growth potential.”
This was the 18th deal of the year 2014 by NIBC Leveraged Finance in Germany, ranking it number 2 on the mid-market transaction league table for Germany, Austria and Switzerland.