PPM Backs MBI of UK/German Packaging Group

Alusuisse Lonza has sold Lawson Mardon Carton Europe to an MBI backed by PPM Ventures. The newco, First Cartons, is acquiring two UK and three German folding carton plants, employing around 860 people. In 1997, the acquired sites – the Pazo facility in Birmingham, the Thynes facility in Edinburgh and the Rotopack plants in Stuttgart, Bunde and Duren – achieved a consolidated turnover of around GBP70 million.

Total funding for the deal was approximately GBP40 million (ecu 60 million), including senior debt and working capital facilities provided by Robert Fleming & Co.

The buy-in team is led by chief executive Alan Johnstone, supported by manufacturing director Graham Gallagher and commercial director Ainsley Miranda; the three previously worked together at stamp and currency printer Harrison & Sons.

First Carton, which specialises in packaging for leading brands in the spirits, confectionery and food sectors, will have a leading market position in the fragmented but consolidating UK and German markets. The company intends to acquire additional European sites in order to extend its geographic coverage, and PPM Ventures anticipates leading additional expansion and acquisition fundings.