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On 22 September 2015, Wendel has signed a term sheet to syndicate a minority stake of its equity investment in Constantia Flexibles to Maxburg Capital Partners (“MCP”), an investment firm backed by the RAG Foundation.
In this context, MCP is committed to buy off Wendel a minority stake in Constantia Flexibles (subject to final documentation) for €100 million representing c. 11% of the share capital. This investment is accompanied with a 12 years standstill agreement with Wendel, consistent with Maxburg Capital Partners and RAG Foundation’s long term horizon. For certain predetermined decisions, Wendel and MCP have agreed to exercise their voting rights similarly.
Maxburg Capital Partners is an independent investment firm focused on long-term value creation via investments in public and private companies in the DACH region, and is backed by the RAG Foundation as sole anchor investor. The RAG Foundation is a long term investor, which was established to discontinue coal mining in Germany in a socially acceptable manner by the end of 2018 and to ensure the financing of perpetual obligations of RAG’s coal mining activities in the German Ruhr and Saar regions.
Constantia Flexibles has successfully developed its activity outside Europe and over the last five years has become a global leader in flexible packaging. Constantia Flexibles now has more than 3,000 customers worldwide, over 8,400 employees and 43 manufacturing sites in 18 countries. Its products are sold in more than 115 countries.
Following this transaction, Wendel will stay Constantia Flexibles’ controlling shareholder with 61% of the share capital for a total equity invested of €540 million. The H. Turnauer Foundation investment in Constantia Flexibles is unchanged with 27% of the capital. Wendel will benefit, under certain performance conditions, from part of the gain realised on MCP’s investment in Constantia Flexibles.
Wendel will continue supporting Constantia Flexibles’ external growth strategy through additional equity investments if needed and preserves the possibility to embrace further minority investors in the share capital.
Frédéric Lemoine, Chairman of Wendel’s Executive Board, said,
“I am delighted to have Wendel and RAG Foundation, both long-term investors, to be committed alongside the same world class company, Constantia Flexibles. I am very pleased to join forces with like-minded equity partners. Together with Maxburg, we will continue to develop Constantia Flexibles over the long-term, based on a shared entrepreneurial vision.”
Moritz Greve, Partner at Maxburg Capital Partners, said,
“We look forward to working with Wendel who have demonstrated to source and execute highly attractive investments such as Constantia Flexibles. We are impressed with the Wendel Team and Constantia Management and their longterm commitment to value creation.”
2015 Investor Day / Publication of NAV and trading update (pre-market release)
2015 full-year results / Publication of NAV (pre-market release)
Shareholders' Meeting / Publication of NAV and trading update (before Shareholders’ Meeting)
H1 2016 earnings / Publication of NAV (pre-market release)
2016 Investor Day / Publication of NAV and trading update (pre-market release
For more information: http://www.wendelgroup.com
Christine Anglade-Pirzadeh: +33 (0)1 42 85 63 24
Caroline Decaux: +33 (0)1 42 85 91 27
Analyst and investor contacts
Olivier Allot: +33 (0)1 42 85 63 73
Elisa Muntean: +33 (0)1 42 85 63 67