Dubai International Capital sells Mauser Group in $1.7bn deal

US-based private equity firm Clayton, Dubillier & Rice acquires the producer of industrial packaging.

Dubai International Capital (DIC) the private equity arm of Dubai Holding has turned a corner with the sale of Mauser Group, a producer of industrial packaging.

The US-based private equity firm Clayton, Dubillier & Rice will acquire Mauser in a deal worth US$1.7 billion.

DIC had acquired Mauser back in 2007 for $1.1bn and was described as a “very successful investment”, providing almost double the return of the capital invested according David Smoot, the chief executive of DIC.

“Now is the right time for it to continue its development under new ownership,” said Mr Smoot. “Mauser is well positioned to drive further growth and profitability given its attractive global platform.”

Under DIC’s ownership Mauser’s footprint grew from 53 facilities in 12 countries to 83 facilities in 18 countries including France, Russia and South Africa, while Ebitda margins rose from 10.7 per cent to 12.3 per cent.

“Mauser has a strong track record of innovation, which has helped the company firmly establish itself as a market leader,” said Sonja Terraneo, a partner at CD&R. “There are exciting opportunities for further growth.”

Bank of America Merrill Lynch acted as the sole adviser to DIC, while Latham & Watkins provided legal counsel.

DIC holds a stake in some 40 businesses and has enjoyed a growth in profits as the UAE’s economy recovers. DIC’s investments before the financial crisis include Doncasters, an engineering firm that provides components to companies such as Rolls-Royce, and London’s Madam Tussauds.

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Published: May 12, 2014 04:00 AM


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