Information on the Target

Walki Group, headquartered in Finland, is a prominent international manufacturer of technical laminates and protective packaging materials. The company is recognized for its innovative fibre-based, intelligent multilayer laminate products, which serve diverse markets including energy-saving construction solutions and consumer packaging. With nine production facilities across Europe and one in China, Walki generated revenues of EUR 318 million in 2017, highlighting its substantial footprint in the packaging sector.

Industry Overview in Finland

The packaging industry in Finland is robust and rapidly evolving, characterized by a strong emphasis on sustainability and innovation. Over recent years, Finnish companies have embraced eco-friendly practices and materials, reflecting a growing consumer preference for sustainable packaging solutions. This shift has created opportunities for businesses to develop products that meet regulatory requirements while also appealing to environmentally conscious consumers.

In addition to sustainability, digital transformation has begun to reshape the packaging landscape in Finland. Companies are increasingly incorporating digital technologies into their operations to enhance efficiency and provide better customer experiences. Automation, data analytics, and smart packaging technologies are now pivotal in driving growth and competitiveness within the sector.

Furthermore, Finland's strategic location in Northern Europe offers companies a gateway to both the European and Asian markets. This geographic advantage, combined with a well-educated workforce and advanced technological infrastructure, positions the country as an attractive hub for packaging manufacturers and suppliers.

Overall, the Finnish packaging industry is on a growth trajectory, bolstered by innovation, eco-awareness, and connectivity to broader markets. Industry players are well-positioned to capitalize on these trends, making it a dynamic environment for investment and expansion.

The Rationale Behind the Deal

The acquisition of Walki Group by One Equity Partners is strategic in nature, aimed at leveraging Walki's leading market position within the packaging sector. One Equity Partners recognizes Walki's strong performance across its three primary business areas: Construction, Consumer, and Industrial. By integrating Walki into its portfolio, One Equity Partners aims to enhance its growth potential through value creation and expand its footprint in a fragmented market.

This transaction is expected to provide Walki with the necessary resources and expertise to pursue its ambitious growth plans. As an experienced investor in the packaging industry, One Equity Partners is well-equipped to support Walki in executing its long-term strategies and capitalizing on buy-and-build opportunities.

Information about the Investor

One Equity Partners (OEP) is a middle-market private equity firm specializing in investments within the industrial, healthcare, and technology sectors throughout North America and Europe. Since its inception in 2001 and subsequent spin-out from JP Morgan in 2015, OEP has established a distinguished track record with over 150 completed transactions globally. The firm focuses on building market-leading companies through transformative business combinations, leveraging a robust senior team and a differentiated investment approach.

With offices located in New York, Chicago, and Frankfurt, OEP offers a comprehensive suite of resources and expertise to its portfolio companies. The firm is recognized for its capability to generate sustained long-term value and solid partnerships with its stakeholders, reflecting its commitment to driving growth and operational excellence.

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The acquisition of Walki Group by One Equity Partners can be considered a promising investment opportunity, primarily due to the strong alignment between Walki's capabilities and OEP's strategic objectives. Walki's established presence in key markets, coupled with its innovative product offerings, creates a solid foundation for growth. This investment not only enhances OEP’s portfolio but also positions Walki for further market penetration and scalability.

Moreover, OEP's extensive experience in the packaging sector allows for effective guidance and support in executing operational improvements and exploring acquisition targets that could enhance Walki's competitive edge. Such synergies are likely to result in enhanced performance post-acquisition.

In addition, the current trends in sustainability and digital transformation within the packaging industry align well with Walki's business model, further strengthening the rationale for this investment. As consumers increasingly demand eco-friendly and technologically advanced packaging solutions, Walki is poised to meet these market needs effectively.

In conclusion, the acquisition of Walki Group presents a significant opportunity for One Equity Partners to leverage its resources and expertise to drive Walki's growth initiatives and capture value within a dynamic and evolving industry landscape.

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