Klöckner Pentaplast Recapitalizes under New Ownership
Strategic Value Partners LLC (SVP Investor Group) has assumed ownership of Klöckner Pentaplast, allowing the global film producer to reduce its debt. Following a cash equity injection of €190 million by a group of new investors led by Strategic Value Partners LLC (SVP Investor Group) and new debt facilities underwritten and funded by Jefferies & Company Inc. and its affiliates (Jefferies), Klöckner Pentaplast has repaid, in full, the principal amount of €800 million of first lien senior secured credit facilities at par plus accrued interest, the company reported in a press release.
Klöckner Pentaplast produces films for pharmaceutical, medical device, food, electronics, and general-purpose thermoform packaging, as well as printing and specialty applications.
Founded in 2001 by Victor Khosla, Strategic Value Partners has primary offices in Greenwich (CT), London, Frankfurt, and Tokyo.
As part of the transaction, Klöckner Pentaplast’s capital structure has been substantially strengthened as total debt has been reduced by approximately 50% to €630 million from €1.26 billion.
The existing management team will remain in place. Reported Christian Holtmann, Chief Executive Officer of Klöckner Pentaplast, in the release: “The committed efforts of various parties to invest in our business have proven that this is a well-managed, operationally strong business with a financially resilient business model. Klöckner Pentaplast is well positioned with a broad product and market portfolio within its key international markets.” Added Holtmann, “We thank all the parties for their constructive and supportive efforts throughout this process. We will remain focused on our key strengths and deliver the high-quality films and superior technical support for which we are known to all our customers. We are eager to work with our new shareholders to move Klöckner Pentaplast forward to drive our strategy and to achieve our goals.”
Khosla, who serves as SVP's Chief Investment Officer, added: “We are delighted to have invested in a business of such quality and resilience, and look forward to working with Christian and his team to fully realize Klöckner Pentaplast’s potential.”