Alantra has advised CMC Group on its sale to KKR

Dec 2020

Sell-side advisory

Milan – Alantra, the independent global mid-market investment banking, alternative asset management and credit portfolio advisory firm, has acted as financial advisor to the shareholders of CMC Group on the sale of a majority stake of their holding company to KKR.

Founded in 1980 and headquartered in Città di Castello, Italy, CMC Machinery is a leading provider of innovative e-commerce 3D on-demand packaging that uses advanced end-of-line technology to improve environmental impact by reducing the consumption of packaging materials. The company is led by the Ponti family and employs a team of approximately 200 based in the Umbria region, specializing in the design and manufacturing of advanced automated packaging solutions for some of the world’s largest retail and logistics companies.

The on-demand packaging market has seen strong growth over the past few years in response to the surge in the e-commerce sector, a trend accelerated by the impact of COVID-19. With volumes expected to grow even further, the environmental sustainability of the related activities is a critical area of focus. CMC Machinery’s innovative 3D technology is market-leading, offering sustainability benefits by producing on-demand custom made boxes that fit the product size, resulting in significant reduction of raw material and void filler used.

The investment is being made by the KKR Global Impact, which is focused on identifying and investing behind opportunities where financial performance and societal impact are intrinsically aligned. Specifically, the Fund is focused on generating risk-adjusted returns by investing in companies that contribute measurable progress toward one or more of the United Nations Sustainable Development Goals.

Following KKR’s investment, CMC Machinery will continue to be led by the Ponti family and headquartered in Città di Castello, with Founder Giuseppe Ponti’s sons, Francesco and Lorenzo Ponti, serving as CEO and COO respectively.

Marcello Rizzo, Managing Director at Alantra Italy said: “We are very honoured to have advised CMC Machinery in this transaction, a company with an outstanding technology that enables to the retail industry to reduce its impact on the environment. KKR is the perfect partner that will enhance CMC’s business model moving forward”.

This is the fourth transaction by Alantra Italy in the industrial sector in the past two years.