Japanese strategic buys Mactac from Platinum Equity
Japanese adhesives producer Lintec Corporation has agreed to buy US-headquartered labels manufacturer Mactac from Platinum Equity for $375 million.
The private equity firm acquired Mactac for $170 million in 2014, carving out the asset from listed packaging business Bemis. The company's European operation was sold to Avery Dennison for EUR200 million ($218 million), including debt, in August.
Mactac produces highly specialized pressure sensitive labels - ranging from self-adhesive postage stamps to industrial mounting materials - used in label printing, graphic design, packaging, digital imaging, retail displays, and engineering, automotive and medical device assembly. It has five manufacturing locations in North America and Europe, and 15 distribution centers globally.
Platinum said in a statement that the company had achieved steady top-line growth, healthy margins and dramatically improved earnings over the past two years, with EBITDA growing by more than 40% from 2014 to 2015. According to a Lintec filing, Mactac generated $304 million in sales for the 12 months ended March 2015, with net income reaching $10 million.
"We partnered with Ed LaForge [the president] and the company's management team to transform Mactac by identifying and capitalizing on sustainable operational improvements while driving innovative new products and technologies," said Louis Samson, a partner at Platinum. "As a result, the company's financial performance has been superb and the business is well positioned for continued growth and success."
Lintec's product portfolio includes adhesive papers and films for seals and labels, automobile-use products, window films, semiconductor-related tapes and equipment, LCD-related products, and color papers for envelopes. Sales came to JPY210.5 billion in the 2016 financial year, up from JPY207.2 billion the previous year. Net income dropped slightly to JPY10.9 billion from JPY11.7 billion.
Platinum has more than $6 billion in assets under management and is currently investing its third buyout fund, which closed in September 2013 at $3.75 billion. The firm has an Asian investment team in Singapore. Recent deals in the region include the acquisition of two manufacturing units from Singapore's Broadway Industrial Group for S$150 million ($111 million) and the purchase of Chinese precision tools manufacturer Ying Shing Enterprises.
The Mactac sale is expected to close in the fourth quarter of 2016. Platinum was advised by Moelis & Company and Goldman Sachs, while Latham & Watkins served as legal counsel. Lintec's advisors include Orrick.
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