Private equity firm Actis has sold its stake in Chinese paper packaging manufacturer Inpac International to Stora Enso, a paper and wood products company based in Helsinki and Stockholm. Financial terms of the deal were not released. Actis, which has offices in Beijing, bought its 30% stake in Inpac in 2007 for $17.71 million.
Actis (http://www.act.is/), a leading private equity investor in the emerging markets, announced today that it has signed an agreement to sell its 30% interest in Inpac International (Inpac), a premier printed paper packaging manufacturer in China (PPP), to Stora Enso, a global paper, packaging and wood products company.
Inpac services the demand from multi-national companies to outsource packaging to local companies and is a one-stop service provider to its customers.
Actis began its relationship with Inpac in 2007 with an investment of US$17.71m of growth capital, which helped the company strengthen its operations and increase sales despite the global recession of 2008/9. Stora Enso had known Inpac and Mr. Guo, the founder, for years. After watching the company sustain itself and emerge much stronger from the worst economic recession in 30 years, Stora Enso decided to acquire the company as part of its China growth strategy.
Commenting on the transaction, Mr. Meng Ann Lim, Actis Partner and Regional Head – China and SE Asia, said “Inpac’s sales have doubled since we invested in 2007; Mr.Guo’s entrepreneurial drive and business acumen contributed to this growth. Actis has been privileged to fund Inpac’s growth and help Inpac upgrade its operations and governance. We are gratified that our efforts to work with management and other shareholders have resulted in a strong company well recognized by Stora Enso.”
“Actis’s investment came at a critical juncture of Inpac’s development and facilitated the company’s growth during the financial crisis”, said Mr.Guo.
Stora Enso is a global paper, packaging and wood products company producing newsprint and book paper, magazine paper, fine paper, consumer board, industrial packaging and wood products.
The Group has some 27,000 employees and 88 production facilities in more than 35 countries worldwide, and is a publicly traded company listed in Nasdaq OMX in Helsinki and Stockholm.
Actis is a leading private equity investor in emerging markets with a growing portfolio of investments in Asia, Africa and Latin America; it currently has US$4.7bn funds under management. Actis has over 100 investment professionals on the ground in 9 offices worldwide.
In Africa, Actis has over US$1.5bn funds under management in 17 countries, and over 25 investment professionals located in Nigeria, South Africa, Egypt, Kenya and London. Actis closed its US$752m Actis Infrastructure 2 fund in 2009 and since has made commitments for infrastructure investments in India, Africa and Central America.
In 2010, Actis was named African Private Equity Firm of the Year by Private Equity International magazine for the third consecutive year. (http://www.act.is)