Warburg buys Clondalkin in US-entry bid

Irish packaging company Clondalkin has been bought by US equity company Warburg Pincus for 630m (430.8m) as it looks to expand in the US and Far East.

The deal means Warburg now controls the 85% shareholding owned by rival investor group Candover, who bought the company for 550m in 1997.

All of Clondalkins senior level management, including chief executive Norbert McDermott, will retain their roles. Warburg Pincus strategy is to expand Clondalkin in the US.

The sale has been on the cards for the past 12 months after Canover announced its intentions by appointing Deutsche Bank to manage the deal (PrintWeek, 24 February).

Clondalkin financial director Colman ONeill said: Warburg Pincus is a giant in the investment capital market. There will be regions we will be concentrating on and as well as Europe and the US, we will look to have a presence in the Far East. It is a region which has been beyond our reach.

Candover director Ian Gray said: The packaging sector is cyclical and we went into it with our eyes wide open. Owning the company for three to five years was our strategy and in that time we doubled the value of Clondalkin.

Gray added that he did not rule out Candover returning to the packaging sector in the future.

Story by Philip Chadwick