London-based private equity firm Silverfleet Capital has acquired Kalle, a Germany-based manufacturer of artificial sausage casings plus sponge cloths, for €212.5 million.
Silverfleet Capital has acquired Kalle from Montagu Private Equity. Originally, Montagu Private Equity had acquired Kalle from CVC Capital Partners in 2004.
Kalle, which is one of the top five global producers of artificial casings for sausages and possesses plants in Hungary, Germany, the Czech Republic and the like, provides employment to about 1,200 people.
Silverfleet lifted €133 million of debt from a group of lenders led by Bank of Ireland.
Guido May, an associate of Silverfleet, said, "The recession proof nature of the food sector has made it possible for us to secure new debt, with the banks more willing to finance leveraged buy-outs in this sector."
Sausage casing is a €3.5 billion market and still expanding at the rate of 3.1% per year.
It is the first investment from Silverfleet's Euro 665-million latest fund.
It may be noted here that 2008 proved to be one of the worst years in the life of Private equity firms.