UK mid-market private equity firm LDC has exited its stake in Benson Group, a manufacturer of printed folding carton and sleeve packaging, in a £100m deal with NYSE-listed Graphic Packaging International.
LDC took a “significant” stake in Benson Group in December 2011 and the deal delivered just over a 2x money multiple on its original investment, according to a source.
Based across four production sites, Benson supplies printed folding carton board packaging to the food retail sector. The business also has a presence in the healthcare market, as a manufacturer of cartons, patient information leaflets and labels for pharmaceutical customers in the UK and Europe. The business employs more than 900 staff and operates from its head office in Bardon in Leicestershire, as well as manufacturing sites in Newcastle, Gateshead and Crewe. The company’s annual turnover rose to £120m in the current financial year.
Andy Grove, investment director at LDC said, “This exit to Graphic Packaging International represents an excellent outcome for Benson Group. Having worked closely with the management team for just over two years, we were keen to ensure the right strategic fit was achieved for the business and we are confident that we have delivered on this objective. We wish everyone at Benson Group continued success in the future.”
LDC invested over £400m of equity across 22 new businesses in 2013. Recent transactions include investments with Joules, The Training Room, Equiom, uSwitch.com, Angus Fire, Rimor, Node4 and D&D London.
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