European-based resource efficiency private equity firm WHEB Partners has agreed to sell its majority stake in the company to Silver Lake Kraftwerk while remaining an minority shareholder as part of the deal.
WHEB, which invested in the company two years ago, scored a return “in the region of two times invested capital”, according to a source close to the deal.
Once the transaction has closed Silver Lake Kraftwerk will become the majority owner alongside existing co-investor Kleiner Perkins Caufield & Byers (KPCB), which co-led the transaction and increased its ownership in the company.
The deal marks the first co-investment between Silver Lake and KPCB.
Based in Geismar, Germany, friedolaTech produces environmentally-friendly products and components for the automotive and packaging industries.
The investment will provide growth capital to enable further product innovation, market development and expansion into new geographic regions, including the opening of a new manufacturing facility in Greenville, South Carolina.
“We are excited to partner with WHEB and KPCB as investors in friedolaTech,” said Josh Raffaelli, partner, Silver Lake Kraftwerk.
“There is a growing global market for engineered plastics and industrial products that are lightweight and reusable. friedolaTech is uniquely positioned as a market leader in this industry and we are eager to support their growth and expansion.”
Silver Lake Kraftwerk is the energy investment strategy of technology-focused investment firm Silver Lake.
The firm invests in companies that leverage technology and business model innovation in the energy and resource industries.
Its stake in friedolaTech marks its first major investment in resource efficiency and its first investment outside of the US.
“friedolaTech is a great success story,” said Jorg Sperling, a partner at WHEB Partners.
“The company was an under-appreciated asset after facing serious challenges during the 2008/09 crisis in the global automotive industry.
“By stabilizing the company financially and by pursuing growth aggressively, friedolaTech is now the leading provider of highly innovative, recyclable and lightweight plastic components used in a variety of industries.
“The company is now ready to expand in the US and we are thrilled to bring such a renowned investor, Silver Lake Kraftwerk, on board to support the company’s internationalisation.”
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