Alantra advised HQ Equita on the recapitalization of The Packaging Group

Dec 2018

Debt refinancing

Alantra has advised HQ Equita (“HQE”) on the recapitalization of The Packaging Group (“TPG”). TPG is a is a market leading provider of premium vertical fill and seal and horizontal form fill and seal packaging machines mainly serving the food market.

In a competitive process Alantra structured and arranged new credit facilities in order to repay HQ Equita shareholder loans and refinance existing indebtedness. In addition, the company received a new acquisition / capex facility so that it is well-positioned for further expansion and growth.

“We are very pleased to have secured a sustainable and well-structured financing package for TPG for the next years. Given TPG’s planned growth strategy, an acquisition facility will enable the company to further accelerate its organic and inorganic growth initiatives. The Alantra team achieved a fantastic outcome in structuring this deal and run a very competitive process with the financing banks” commented Florian Wiemken, Investment Director at HQE.

“The refinancing of TPG marks the 5th transaction on behalf of HQ Equita within the last 4 years and the 12th debt advisory transaction within the last twelve months” said Robert von Finckenstein, Managing Partner at Alantra`s German office.

“We are very pleased to have obtained a sustainable and well-structured financing package for The Packaging Group. Working with Alantra on this assignment was a great help. The entire team demonstrated an excellent understanding of the packaging industry, which clearly helped to secure the financing package in a swift and flawless manner.“ remarked Friedbert Klefenz, Head of the Advisory Board at TPG.

Headquartered in Engelskirchen, Germany, TPG consists of Fawema GmbH and HDG Verpackungsmaschinen GmbH. Founded in 1920 and 1984 respectively, TPG is focused on packaging machines for the filling of dry, free-flowing bulk goods into various bag types made of paper or plastic laminates. TPG addresses the high-end premium segment with packaging solutions for flour & baking mixes, sugar, foods & candy, pet products and various chemical products.

Founded in 1992, HQ Equita is one of the most experienced equity providers in German speaking regions. The company has acquired a total of ca. 1 billion euros in capital commitments and invested in over 30 enterprises. Investors include institutions, family offices, foundations and trusts as well as notable entrepreneurial families – including the Harald Quandt family.