Target Information

Waterland Private Equity has recently invested in TG Group, a Belgian-based company specializing in packaging machinery. Since its inception in 2006 as TG-Technics, founded by Tom Vermonden, TG Group has transformed from a solo maintenance operation to a prominent global supplier of packaging machines and feeder lines. The company has significantly expanded its reach through strategic acquisitions, including Entrec and Frematt in 2022, operating out of facilities located in Verrebroek and Hoogstraten.

Industry Overview

The packaging machinery industry is witnessing robust growth, driven by increasing consumer demand for packaged goods globally. Belgium, strategically positioned in Europe, benefits from an advanced logistics infrastructure and a strong manufacturing base. The country serves as a hub for international trade, facilitating exports in packaging machinery to various regions, including Europe, North America, and the Middle East.

Market trends indicate a rising preference for automation and smart packaging solutions, prompting companies to innovate and enhance their production capabilities. As sustainability becomes a key focus, the demand for eco-friendly packaging options is also on the rise, challenging manufacturers to integrate new technologies.

In this evolving landscape, players like TG Group that prioritize expansion, technological integration, and strategic acquisitions are likely to maintain a competitive edge. The company's success is further supported by Belgium’s favorable business environment for advanced manufacturing sectors.

Rationale Behind the Deal

Waterland's investment in TG Group aims to capitalize on the company's robust export model and ambitious growth plans. With over 95% of its revenue derived from exports, TG Group is well-positioned for significant global expansion. The investment will facilitate the scaling of production capacity, enhance technological integration, and allow for future acquisitions in an industry ripe for consolidation.

Investor Information

Waterland Private Equity is recognized for its commitment to investing in scalable industrial platforms. The firm seeks out opportunities that showcase international growth potential, aligning with its strategy to drive value creation through operational improvements and market expansion. By supporting innovative companies like TG Group, Waterland demonstrates its focus on advancing industries that are pivotal for the future.

View of Dealert

This investment appears to be a strategic move for both Waterland and TG Group, given the latter's strong position in a growing industry. The packaging machinery market is experiencing significant shifts toward automation and sustainability, which TG Group is well-prepared to address. With Waterland's backing, the company can accelerate its growth trajectory and enhance its competitive standing in both existing and emerging markets.

The potential for future acquisitions positions TG Group to not only expand its product offerings but also increase market share in key regions. This proactive approach to growth, alongside investment in innovative technologies, could yield substantial returns for Waterland.

Overall, the investment is likely to foster TG Group's evolution into a leading player within the global packaging machinery sector, making it a potentially lucrative opportunity for Waterland and an encouraging sign of confidence in the industry's positive outlook.

View Original Article