Information on the Target

Carton Group, a prominent supplier of packaging solutions and a portfolio company of Waterland Private Equity, has achieved significant milestones with the recent refinancing and strategic acquisitions in Italy, Germany, and the UK. Founded as a Waterland portfolio entity in 2020, Carton Group has already made impactful acquisitions, starting with Joh. Leupold GmbH & Co. KG in Schwabach and Strobel AG in Roth. The latest developments mark vital steps in its growth strategy aimed at becoming a leading multinational entity in the packaging industry.

The company has successfully executed a group refinancing, laying a robust financial foundation to advance its ambitious plans and enhance its market positioning. The recent acquisitions of Europoligrafico in Italy, noble-pac in Düren, and Wrapology in London not only expand its portfolio but also reinforce its international market presence, marking a transformative phase for Carton Group.

Industry Overview in the Target’s Specific Country

The packaging industry in Europe, especially within Germany and Italy, is experiencing a significant transformation driven by increasing demand for sustainable practices and innovative designs. In recent years, European consumers have shown a heightened preference for eco-friendly packaging options, prompting companies to innovate and adopt greener materials and processes. This shift underscores the critical importance of sustainability in the industry.

Germany, as one of the leading markets for packaging solutions in Europe, showcases a mix of traditional packaging practices and cutting-edge manufacturing techniques. The country's emphasis on quality, efficiency, and sustainability positions it as a crucial player in the global packaging arena. Moreover, the focus on consumer goods in Germany drives demand for premium packaging solutions that emphasize both functionality and aesthetics.

Italy, known for its strong design heritage, brings an added dimension to the packaging landscape, particularly with its expertise in innovative and visually striking packaging solutions. The Italian market is characterized by a surge in artisanal brands and products, which often seek specialized packaging to convey their unique value propositions. This dynamic creates a fertile ground for companies like Carton Group to leverage their design capabilities.

With the ongoing expansions and consolidations in the European packaging sector, companies are increasingly seeking to optimize their production capabilities and broaden their service offerings. This trend supports Carton Group's strategy of diversification and comprehensive customer solutions, further solidifying its competitive edge in the marketplace.

The Rationale Behind the Deal

The recent acquisitions align with Carton Group's strategic vision of expanding its production capacity and market reach, particularly in the European packaging sector. By acquiring Europoligrafico, Carton Group gains additional production sites in Italy, enhancing its capability to cater to the robust demand for food and consumer goods packaging. The inclusion of noble-pac further strengthens its foothold in Germany, particularly within the consumer goods segment.

Additionally, wrapping up the acquisition of Wrapology not only broadens Carton Group's international footprint but also taps into the growing demand for luxury and sustainable packaging solutions. This multifaceted approach allows Carton Group to innovate its product offerings while leveraging synergies across its newly acquired businesses.

Information About the Investor

Waterland Private Equity is an established investment firm with a diverse portfolio spanning various sectors, including packaging. With a proven track record of over 1,000 investments and managing assets exceeding EUR 14 billion, Waterland is committed to fostering growth in its portfolio companies through strategic acquisitions and organic development. The firm's approach emphasizes building robust, sustainable businesses that can thrive in competitive markets.

Under Waterland's stewardship, Carton Group is focused on becoming a leader in the European packaging industry. The firm’s dynamic buy-and-build strategy facilitates the identification and integration of complementary companies that enhance both capabilities and market presence. Waterland actively supports Carton Group's ambitious growth ambitions, aiming to expand its influence in the packaging landscape.

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The recent acquisitions executed by Carton Group represent a strong strategic play in the evolving packaging industry. Given the current trends towards sustainability and innovation, these investments position Carton Group favorably to capitalize on increasing market demands. The integration of Europoligrafico and noble-pac expands Carton Group’s expertise in food-focused and premium packaging, allowing for enhanced product diversity and a stronger customer base.

Moreover, the acquisition of Wrapology introduces valuable design and logistics capabilities, which are critical in servicing the luxury packaging segment. As consumers continue to gravitate toward sustainable and aesthetically pleasing packaging, Wrapology's established relationships and brand knowledge make it a strategic fit for Carton Group's growth narrative.

In conclusion, this series of strategic acquisitions could indeed mark a pivotal moment for Carton Group, offering substantial growth opportunities and enhanced market positioning. The reinforced focus on sustainability and innovative packaging solutions aligns with global consumer trends and provides the foundation for a robust growth trajectory.

Overall, these developments could be seen as a well-timed investment that facilitates both short-term gains and long-term growth potential, reinforcing Carton Group's standing in the competitive European packaging market.

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