Cerea Mezzanine II exits Megg Invest (Omni-Pac Group)The Cerea Mezzanine II Fund has fully exited Megg Invest on the occasion of the company's sale to Latour Capital.
In 2014, Cerea Mezzanine II financed Motion Equity Partners' acquisition of Celluloses de La Loire (CDL) alongside the management team led by Renaud Malarre. Driven by its excellent knowledge of the company and close relationship with the management team, Cerea Mezzanine II provided a unitranche bridge solution enclosing guaranteed funds which enabled the buyer to secure exclusivity for the takeover of the group from Cerea Capital. At closing, Cerea Mezzanine II arranged and underwrote a mezzanine financing issued by the holding company Megg Invest.
Founded in 1977 in Brittany, France, CDL produces packaging and other solutions in moulded fibre, a recyclable and compostable material made from recycled paper and cardboard targeting mainly the poultry market (trays, inserts and egg boxes).
The group achieved strong growth between 2014 and 2020, benefiting in particular from (i) the commercial synergies implemented with Germany-based Omni-Pac (acquired in December 2016) and (ii) the acquisition in February 2020 of UK-based Moulded Fibre Products.
These two key acquisitions have made CDL a pan-European player, now branded as Omni-Pac Group, one of the three market leaders in Europe, with a broad range of products (poultry, fruits and vegetables, medical and other applications) and three highly complementary production sites each located in the group's key markets. This very strong position coupled with the business' potential for further development and its attractive market dynamics, driven notably by the acceleration of plastic substitution (e.g. in the fruits and vegetables segment), allowed the group to command a very competitive divestment process.
Having now exited almost all of its investments, this latest transaction allows the Cerea Mezzanine II Fund to consolidate its performance.
Cerea Partners recently announced the successful first closing of its 4th generation mezzanine fund at €215 million, already exceeding the size of its predecessor, and reaching over 85% of its final target.