Brookfield Business Partners has agreed to acquire a majority stake in European packaging maker Schoeller Allibert Group for €205m from JPMorgan Chase & Co.
Brookfield said Schoeller Allibert, which manufactures returnable plastic packaging systems. is one of Europe’s key players in the returnable packaging sector.
Brookfield partnered with the founding Schoeller family, who will continue to hold the remaining 25% stake in Schoeller Allibert via Schoeller Group.
The Schoeller Group have the opportunity to increase their ownership over time.
Brookfield Business Partners CEO Cyrus Madon said: “An increased global focus on sustainability, waste reduction, e-commerce and logistics automation positions the returnable packaging sector for meaningful growth, so we are pleased to invest in Schoeller Allibert which has built a highly regarded reputation in this space.
“We look forward to partnering closely with the management team and the Schoeller Group to bring our operational expertise and geographic reach to create further value and grow the business.”
Schoeller Allibert has a product portfolio of more than 1000 types of returnable plastic crates and containers used by global customer base across several industries, including agriculture, beverage, food processing and retail, industrial and automotive manufacturing and container pooling and rental companies.
The company has manufacturing sites across Germany, Netherlands, France, Spain, the UK, and one facility in the US.
The returnable package industry is expected to grow, as a substitute to one-way packaging. This is claimed to be a trend driven by global focus on sustainability, waste reduction and growing e-commerce and logistics automation.
The company also claims to have a comprehensive patented product range of foldable containers, rigid pallet containers, beverage crates as well as trays, stackable boxes and pallets.
Schoeller Group managing partners Martin and Christoph Schoeller said: “We valued the partnership with J.P. Morgan and are excited about the new partnership with Brookfield.
“We look forward to an increased ability to grow the business organically through continued innovation as well as internationally, organically or through acquisitions, supported by Brookfield’s global presence, financial strength and expertise.”
Brookfield Business Partners said it will commit to fund up to €50m of the equity on closing using existing liquidity.
Before or following closing, a part of Brookfield Business Partners' investment could be syndicated to other institutional investors.