Wednesday 20 November 2013

20 November 2013 - UK packaging firm Chesapeake Services Limited and US sector player Multi Packaging Solutions Inc (MPS) said they had agreed to combine their operations

Chesapeake and MPS are currently portfolio firms of US private equity firms Carlyle Group LP (NASDAQ:CG) and Madison Dearborn Partners LLC respectively. Their merger is seen to create a leading global provider of print-based specialty packaging with sales of over USD1.4bn (EUR1bn) on a pro forma basis with a staff of over 7,000. It will have operations in the US and in ten European countries, as well as in emerging markets such as China.

Marc Shore, MPS's CEO, who will serve as CEO of the combined firm, commented that the enlarged entity, with an expanded footprint and range of products would benefit both companies' customers and employees. His counterpart at Chesapeake, Mike Cheetham, who will act as co-president of the merged company, added that the two companies would continue investing in the businesses in order to avail themselves of the growth opportunities created from the merger.

The enlarged firm will be equally owned by funds managed by Carlyle and Madison Dearborn, and Chesapeake's and MPS's management.

The deal is subject to regulatory approvals, among other customary closing conditions, and is seen closing in the first quarter of next year, the companies said.

Credit Suisse Group AG (VTX:CSG) and Latham & Watkins LLP served as advisors to Chesapeake and Carlyle. Barclays Plc (LON:BARC), Moelis & Company LP and Ropes & Gray LLP advised MPS and Madison Dearborn. Weil, Gotshal & Manges LLP acted as legal counsel to Credit Suisse and Barclays.