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Sell-Side: DTCF Leverages Packaging Experience to Successfully Complete Cross-Border Carve-Out Transaction

Deloitte & Touche Corporate Finance LLC

Abstract
A Sweden-based portfolio company of a European private equity firm was looking to divest its U.S.-based foodservice packaging and premium paper goods subsidiaries. Deloitte & Touche Corporate Finance LLC* (DTCF) was the exclusive sell-side financial advisor in the divestiture. DTCF identified several potential strategic and private equity acquirers, and helped our client complete the transaction with a strong valuation for the portfolio company.

The Challenge
The divestiture of the seller’s U.S.-based foodservice packaging and premium paper goods subsidiaries involved multiple parties including the seller, the seller’s private equity sponsor, the buyer, and members of the management team. Complex carve-out issues, a host of ancillary agreements, different cultures, and players in different time zones further complicated the deal. Negotiations around non-compete and use of trademark were particularly complex, given that the Swedish company continued to sell similar products in Europe. Additionally, many potential buyers were interested in either the plastic or the paper business but not both, given there were historically few synergies between the businesses.

How We Helped
DTCF was able to successfully identify a buyer that understood the opportunity to bundle the paper and plastics businesses by leveraging the sales, marketing, logistics, and distribution capabilities of the two companies. The DTCF team used its knowledge of the business, its relationships with corporate lenders, and its industry experience to bring all parties to a successful completion of the deal.

Lessons Learned
Through our deep coverage of the paper and packaging sector, credentials in completing middle-market transactions, and strong track-record of working with private equity groups, DTCF was able to help our client close the transaction and realize a strong valuation for the company.

*Deloitte & Touche Corporate Finance LLC is an NASD and SEC registered national broker dealer authorized to do business in the 50 United States plus Washington, D.C., and Puerto Rico. The broker dealer is a wholly owned subsidiary of Deloitte Financial Advisory Services LLP. All investment banking products and services within the United States are offered exclusively through Deloitte & Touche Corporate Finance LLC.

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