Sale of KWH Plast Oy Ab to Schur Flexibles GmbH
KWH Plast is a developer, manufacturer and seller of tailor made plastic films for the packaging and labeling, food, pharmaceutical and medical industries. The company’s turnover was 17 M€ with a negative EBITDA. 90 % of the products were imported mainly to Central Europe. KWH Plast’s strengths include a strong and successful R&D, high tech products, good machinery and strong manufacturing know-how. The challenges were poor profitability, inadequate volumes for break-even, building foreign distribution channels and a large facility in Pietarsaari with a low utilization rate.
The organization employs 70 people, most of which are in production. The company sold their products to international packaging industry companies (converters) to companies in the label, food and pharmaceutical industries.
Our main value creation components were:
- Conducting a market analysis on the European market together with other IMAP Switzerland office
- Screening of potential strategic industrial buyers with own production and an established distribution channel for KWH Plast’s products. In addition, the buyer needed to be willing to pay for the technology
- Contacting 105 companies in 18 countries and 3 continents together with IMAP colleagues
The transaction was carried out as an asset deal to Schur Flexibles Group, which is owned by the German private equity group Capiton.
The German Capiton AG
The German Capiton AG has 786 M€ assets under management. Capiton bought Schur Flexibles in 2011 and executes a determined buy-and-build strategy.
The Schur Flexibles Group
The Schur Flexibles Group comprises of 16 companies that are developers, manufacturers and sellers of packaging materials. The Group employs over 850 people and has activities in Germany, Austria, France, Denmark, Finland and the United States.