Silverfleet Capital nabs Kalle

European private equity house Silverfleet Capital has acquired Kalle, a manufacturer of sausage casings, for €212.5 million (£183 million).

European private equity house Silverfleet Capital has acquired Kalle, a manufacturer of sausage casings, for €212.5 million (£183 million).

This is the first investment from Silverfleet’s new fund of €665 million and is one of the largest private equity deals agreed so far this year. Debt for the transaction was secured from a syndicate of banks led by the Bank of Ireland.

Guido May, a partner at Silverfleet Capital, says, ‘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.’

Silverfleet plans to grow Kalle through a buy and build strategy and has already identified several acquisition targets, according to managing partner Neil MacDougall. The vendor is Montagu Private Equity, which backed a secondary buy-out of Germany-based Kalle in 2004.

The company makes artificial sausage casings and sponge cloths and was founded in 1863.

Nick Britton

Nick Britton

Nick was the Managing Editor for growthbusiness.co.uk when it was owned by Vitesse Media, before moving on to become Head of Investment Group and Editor at What Investment and thence to Head of Intermediary...

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