Casings firm in new ownership

An international private equity firm has announced the acquisition of an artificial sausage casings firm, worth €212.5m, from Montagu Private Equity, subject to approval.

Kalle, headquarted in Germany with offices in Essex, has now been taken over by Silverfleet Capital as part of its investment plan, said to be one of the largest private equity deals agreed so far this year.

Kalle CEO Dr Walter Niederstätter said: “This sets the company in a strong position to outperform the rest of the market. We look forward to working with Silverfleet Capital to further realise the potential of the business.”

Kalle is said to have forecast sales of €220m and operates from 16 production sites in 10 countries, having recently established its own manufacturing facility in the USA.

The company develops polymer and value-adding casings with over 12,000 different products supplied to approximately 1,100 customers in over 80 countries.

Neil MacDougall, Silverfleet Capital managing partner, added: “Another part of our rationale for acquiring Kalle is the opportunity to fuel growth through a buy-and-build strategy. We’ve identified several acquisition targets that would fit well with Kalle and we are excited about these potential expansion prospects.”