Electra Private Equity has announced the sale of their interest in Kalle, the global manufacturer of artificial sausage casings and sponge cloths, to Clayton Dubilier & Rice LLC. The transaction is subject to regulatory approvals.
Upon completion Electra is expected to receive proceeds of £22 million (based on current exchange rates), Together with proceeds from the refinancing of Kalle in 2013, Electra’s total proceeds from the investment will be £27 million. This equates to a return of 3.0x original cost, an IRR of 21%.
Headquartered in Wiesbaden, Germany, Kalle is one of the world’s leading producers of artificial casings for processed meat products. The firm has a portfolio of high quality products which include viscose, textile and plastic artificial sausage casings as well as sponge cloths. Kalle was acquired by Silverfleet Capital in September 2009 for €213 million. In March 2010, Silverfleet syndicated part of its investment with Electra investing £9 million in the business. This broadened the investor base and provided increased firepower for Kalle to execute its buy and build strategy.
ELTA : Electra sells stake in Kalle