CVC Backs Siat MBO

CVC Capital Partners, which last year teamed with Cinven in the GBP1 billion (euro 1.45 billion) buyout of Kappa Packaging, continues to find investment opportunities in the highly fragmented packaging sector. The group in early February backed the MBO of Siat Group, one of Italy’s principal packaging products manufacturers, from its private shareholders.

Siat, based in Como, was established in 1971 and employs more than 300 people at four production sites in Italy and one in the US. The company manufactures packaging equipment including carton sealing machines, tape dispensers, pallet wrapping systems, tape and label printers and thermo wrapping machines.

Siat, which exports the majority of its products outside Italy, in 1997 made pre-tax profits of L13.3 billion (euro 6.9 million) on consolidated sales of L90.5 billion.

Siat’s management team, led by managing director Pier Matteo Guella is investing for a minority stake in Siat alongside CVC. Interbanca provided senior debt for the deal. The price paid for the company has not been disclosed.

Pier Matteo Guella said Siat now plans to exploit its strong product development capabilities to extend its product range, while continuing to develop its distribution network across Europe and the US. CVC Capital Partners director Luigi Lanari added that the new owners plan to augment Siat’s organic growth with acquisitions to develop its presence in new product areas.