Ontario Teachers' Pension Plan acquires majority stake in Logoplaste

Logoplaste Consultores Técnicos SA today announced that Ontario Teachers' Pension Plan Board has agreed to acquire The Carlyle Group's majority stake in the company. Financial terms of the transaction, which is subject to customary regulatory approvals, are not disclosed.

Earlier this month it emerged that a staple financing arranged by Barclays and Goldman Sachs was backing the auction with a total leverage multiple of 5.75x, sources say, noting that the deal financing is expected to bring a first-lien/second-lien loan structure. Sources further note that a privately placed pay-in-kind facility could be an alternative for a second-lien. It is unclear, though, whether this staple will be used.

Current Logoplaste shareholders Filipe de Botton and Alexandre Relvas will retain their approximately 40% stake in the business.

The deal brings an exit for Carlyle from an investment dating from 2016 when the firm agreed to partner with founding family shareholders. That deal was backed by a €570 million all-senior loan financing that included a €205 million term, which was repriced in 2017 to E+400. The deal also includes term loans of $95.5 million and £67.3 million, and the firm agreed to add an ESG-linked margin ratchet to the structure in June 2020.

Logoplaste is a designer and manufacturer of rigid plastic packaging, and the firm has performed well since buyout to double EBITDA, which now approaches €140 million. The firm does have significant expansion capex needs, sources note, and the original buyout loan also brought a €150 million capex loan and a €50 million revolver.

Logoplaste and its shareholders were advised by Barclays Bank PLC, Goldman Sachs International and Linklaters LLP. Ontario Teachers' was advised by Credit Suisse International as financial adviser, Weil Gotshal & Manges and Uria Menendez as legal advisers and Ernst & Young LLP as accounting and tax adviser.