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MPS Case Study

With Carlyle’s support MPS became a leading, global provider of value-added packaging solutions.

About Multi Packaging Solutions and the Transaction
On September 30, 2013, Carlyle acquired Chesapeake, a supplier of value-added paper-based packaging products to the Healthcare and Consumer markets in Western Europe, with a footprint in the US. In February 2014, Chesapeake merged with Multi-Packing Solutions (MPS), which served similar end markets but was largely focused on North America. MPS was owned by Madison Dearborn Partners who became 50:50 partners with Carlyle following the merger.

The combined MPS is now a prominent supplier of value-added paper-based packaging products and services to the pharmaceutical and healthcare, personal care, premium spirits, confectionery and other consumer markets.The company has more than 8,600 employees and operates from more than 55 manufacturing facilities on three continents.

Key Value Creation metrics

  • The merger significantly improved the prospects of the combined business:
    • Created a global leader in the sector with a diversified geographic and product mix.
    • Created significant cross-selling opportunities given the complementarity of the two businesses (both geographically and by end market)
    • Cost synergies in excess of $20 million achieved from production footprint rationalization, SG&A reduction and procurement efficiencies
    • Increased exit optionality – increased ability to access U.S. capital markets, which facilitated an IPO in 2015
  • Following the merger, and prior to going public, the company completed a further six acquisitions expanding its presence across its existing geographies and significantly enhancing its presence in China and Mexico. In addition, the company added a range of complementary products to its consumer business and generated significant cost synergies.

Exit
On October 22, 2015 the Company was listed on the New York Stock Exchange. Carlyle subsequently exited a portion of its holding through a secondary offering in June 2016. Thereafter, in June 2017, MPS was sold to the WestRock Company for an enterprise value of ~$2.3 billion, fully exiting Carlyle and all other public shareholders.