Arle Capital is acquiring Innovia Group from the Candover 2001 Fund, which Arle has managed since 2009. Innovia is headquartered in Wigton, Cumbria, UK. The business is an international manufacturer of high quality, speciality films.
Private equity firm Arle Capital (“Arle”) today announces that it has agreed to acquire the Innovia Group (“Innovia”) from the Candover 2001 Fund, which Arle has managed since 2009, for an enterprise value of €498 million.
Innovia, headquartered in Wigton, Cumbria, is an international manufacturer of high quality, speciality films for its key markets of labels, overwrap, packaging and polymer banknote substrate. In early 2014, Innovia Security procured the Bank of England contract to supply substrate for the new polymer £5 and £10 notes.
Arle has raised fresh capital to fund the transaction from a syndicate of global investors. For the Candover 2001 Fund investors, it represents a return of 2.1x the original investment and an uplift of 3.5x since Arle took on management of Innovia in 2009. Earlier this year, Arle also refinanced the business and raised €340 million by way of a high yield bond.
Richard Booth, Investment Director at Arle, commented:
“Today’s transaction represents an attractive outcome for all parties and we are delighted to be investing in such a unique business. Under Arle’s management, Innovia has focused on product development and innovation in its core markets which has delivered strong profit growth against a difficult economic backdrop.
With the acquisition last year of the JV interest in the Security division, Innovia Security now fully sits alongside the Films business. Together, they have an exciting organic growth profile which Arle will support through significant investment in new capacity for both the Films and the Security businesses.”
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David Beeby, Chief Executive of Innovia Group, commented:
“Innovia has undergone a significant transformation in recent years. Today we
have a wide range of brands and trademarks with market-leading technology
which provide an excellent platform for growth. We are delighted that we will
continue to work alongside Arle and a new syndicate of investors who are as
energised about our future prospects as we are.”
The sale of Innovia represents the final realisation in the Candover 2001 Fund
following Vodafone’s announcement to acquire ONO in which Arle had a minority
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For further information please contact:
Richard Booth: +44 (0) 207 979 0000
Ben Foster: +44 (0) 20 3603 5220
Notes to editors
Arle is an international private equity investor and asset manager. Arle brings together an accomplished team
of investment professionals and proven international business leaders, managing a diverse portfolio of around
€2 billion for a global investor base. Since taking on the portfolio in 2009, Arle has returned over €1 billion to
investors through the realisation of six investments: Ontex, Equity Trust, Capital Safety Group, Qioptiq, DX
Group and Innovia Group.
Arle’s approach is based on active ownership in close partnership with management in order to drive long
term uplifts in growth and value which will generate strong returns for Arle’s investors.
For more information, please visit www.arle.com.
The Innovia Group has two divisions, Innovia Films and Innovia Security. Worldwide Innovia employs some
1,600 people, with a focus on high quality speciality products, strong customer relationships, R&D, and
Innovia Films is a major producer of Biaxially Oriented Polypropylene (BOPP) and cellulose (NatureFlex™ and
Cellophane™) films with production sites in the UK, USA, Belgium and Australia. It holds a leading global
position in the markets for labels and security films, coated packaging, overwrap and renewable and
28 April 2014
Innovia Security is the suppler of Guardian® the world’s most sophisticated banknote substrate which is currently issued by 23 countries worldwide.
For more information, please visit: www.innoviafilms.com and www.innoviasecurity.com
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