Electra Private Equity invests €40 million in the buyout of Innovia Group

POSTED 18 April 2014

Electra Private Equity PLC (“Electra”) is pleased to announce a €40 million cornerstone investment in the €498 million acquisition by Arle Capital of Innovia Group (“Innovia”), a leading manufacturer of films used for packaging, and substrate used in polymer banknotes.

This investment has no impact on Electra’s diluted net asset value per share at 30 September 2013.

Headquartered in Wigton, Cumbria, Innovia operates from production sites on three continents and sells through a global network of sales offices, agents and distributors. Innovia is a leading global producer of speciality high performance films primarily used to make pressure-sensitive and in-mould labels, overwrap and advanced coated flexible packaging for the food industry. The company occupies leading positions in niche markets and enjoys long-term customer relationships.

Innovia is also an established manufacturer of polymer banknote substrate under the Guardian® brand, supplying to more than 20 countries worldwide. Polymer banknotes have numerous advantages over paper notes including security, durability, impermeability and cleanliness but today account for only a small share of all banknotes in circulation. In early 2014, Innovia announced a new contract with the Bank of England for the supply of polymer substrate for the next generation £5 and £10 notes. Arle raised fresh capital to acquire Innovia.

Bill Priestley, Partner at Electra Partners (the Manager of Electra), said:

“Innovia’s market-leading films business is attractive in its own right, while its security business is particularly well positioned to benefit from further growth in the market for polymer bank notes as central banks around the world continue to choose to benefit from the advantages of polymer over paper banknotes.”

Alex Fortescue, Chief Investment Partner of Electra Partners (the Manager of Electra), said:

“We are delighted with the continued high level of investment activity. In the seven months since September 2013 Electra has invested or committed to invest over £225 million in six companies.

“The investment in Innovia highlights one of the key advantages of Electra’s flexible investment strategy, namely the ability to co-invest in minority positions alongside other private equity firms or corporates, in this case as a cornerstone investor in an established international business with strong growth potential.”

Alex Fortescue, Bill Priestley and Owen Wilson are responsible for the investment in Innovia. Bill Priestley will be joining the company’s board.

This follows a busy period for Electra following the £85 million investment in Hotter Shoes, the £83 million commitment to invest in Ogier Fiduciary Services, the £14 million acquisition of Calrec and the further investments in CALA Group and Treetops Nurseries. In the year to 30 September 2013, Electra Partners announced record levels of investments and realisations, investing £337 million and realising £459 million on behalf of its major client Electra Private Equity PLC.

Electra Private Equity PLC is managed on an exclusive and fully discretionary basis by Electra Partners LLP. 

Ends


For further information please contact:

For Alex Fortescue or Bill Priestley:

Andrew Honnor or Rob White, Greenbrook Communications  
+44 (0)20 7952 2000
Andrew Kenny or Nicholas Board, Electra Partners   +44 (0)20 7306 3932