Company at a Glance:
Mivisa is the leading manufacturer of tinplate food packaging in Spain with 35% market share and third largest producer in Europe. The company has a broad product range in the industry with over 475 different references. With a headcount of more than 2,000, the company’s geographic footprint extends to over 70 countries, including 10 factories across Spain, Netherlands, Hungary, Morocco, Peru and Ghana.
Origination and Investment Rationale:
The transaction was envisaged as a limited auction in which Alantra PE had a unique access to the seller due to its strong historic relationship with the company’s management (partner in charge was on the company’s Board of Directors between 2001-05) and knowledge of the asset, which proved to be decisive to success in the auction process and as the ideal partner for Blackstone. Additionally, Alantra PE’s team relations with the management proved essential to guaranteeing Mivisa’s top management’s continuity after the acquisition.
The acquisition rationale was based on the following criteria:
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- Outstanding executive team who led Mivisa for 27 years
- Stable and predictable market resilient to cycle changes with high barriers of entry
- Unique manufacturing model (centralized production, local assembly – hub-and-spoke), which allows for economies of scale
- Growth opportunities, organically and through add-on acquisitions
- Historical sustainable growth with strong cash generation profile
Alantra Contribution and Value Creation:
a) Management Build-up and Upgrade
Excellent and experienced team in place. The company’s CEO and CFO subsequently became members of the Alantra PE’s Executive Network.
b) Operational Improvements and Organic Growth
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- Effective cash management allowed for significant deleveraging and investment in growth opportunities
- Active role of Alantra PE team in developing the business plan
- About 40% of the organic growth was expected to originate in Spain and related economies (i.e. Peru)
- Increased and reinforced Mivisa’s Spanish leadership by opening a new plant in Spain and capturing market share
c) Strategic Add-ons and Expansion
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- International sales at the end of the holding period accounted for c.60% of total revenue
- Opened a new plant in Spain and three plants abroad in Hungary, Peru and Ghana
- Expansion programs enabled unique international footprint in Latin America, Eastern Europe and North of Africa
- Alantra identified and led negotiation for an add-on acquisitions in Latin America, which did not materialize before the business was sold – but provided strong evidence of M&A opportunities for Mivisa in the future
About the Exit:
The Company was sold in a one-on-one negotiation with a strategic buyer, Crown Holdings, who had demonstrated a strong interest in the company in the past. Crown Holdings is an American world-leading player in the design, manufacture and sale of consumer goods packaging, particularly in metal packaging technology, with operations in 40 countries, employing over 23,000 people worldwide.