Advent International sells Danish food packaging company Faerch to A.P. Moller Holding
- Under Advent’s ownership, Faerch has become a leader in circular food packaging with integrated recycling capabilities
- New owner A.P. Moller Holding will support further growth by scaling Faerch’s unique tray recycling platform and strengthening its European market position through additional M&A
- Advent Managing Partner Ranjan Sen: “We have found an ideal partner for Faerch”
Copenhagen, December 14, 2020 – Advent International (“Advent”), one of the largest and most experienced global private equity investors, has signed an agreement to sell leading Danish food packaging company Faerch A/S (“Faerch”) to Danish foundation-owned holding company A.P. Møller Holding (“A.P. Moller Holding”). The transaction values Faerch at approximately €1.9bn.
Faerch is a pan-European packaging company, headquartered in Denmark, that holds leading positions in sustainable rigid packaging solutions for the food industry. The company has over 50 years of experience in developing, designing and producing innovative and high-quality packaging solutions in ready meals, food-to-go, dairy and fresh meat segments. Faerch is a pioneer in integrated tray recycling and leads the industry’s efforts in making food packaging circular with a clear product focus on recyclable mono-PET solutions.
Advent acquired Faerch in August 2017 and since then has supported the company’s growth through product innovation and the expansion of its European footprint by a number of strategic add-on acquisitions. Under Advent’s ownership, the company has taken the lead in the transition from rigid food packaging towards circularity and pioneered tray-to-tray recycling at an industrial scale, with the world’s first tray recycling line in the Netherlands. Since 2017, the company has increased its revenue by more than 60 percent with revenues exceeding c. €500 million in 2020 and continues to enjoy industry leading margins.
The Danish foundation-owned holding company A. P. Moller Holding is a long-term investor committed to building businesses with a positive impact on society. A.P. Moller Holding’s diverse portfolio includes companies like A.P. Moller – Maersk, Danske Bank and KK Wind Solutions. The holding company will support Faerch in the next phase of its growth by scaling its unique tray recycling capabilities across Europe, accelerating the transition towards mono-PET solutions in Faerch’s core market segments and pursuing further consolidation through M&A activities.
Ranjan Sen, Managing Partner at Advent International, said: “We have found an ideal partner for Faerch. Over the last three years, we have supported the management to build the company into a true leader renowned for its sustainable food packaging and recycling capabilities. With A.P. Moller Holding, the company will have a long-term oriented owner with strong roots in Denmark that is known to invest in and grow leading businesses with a positive impact on society.”
Lars Gade Hansen, CEO of Faerch A/S, commented: “We are thankful to Advent for the successful partnership over the last years and for supporting us in building a unique recycling platform. Together with our new owner A.P. Moller Holding, we will now enter the next growth phase, benefitting from their resources, industrial network and expertise to strengthen Faerch’s European market position and build on our innovation leadership.”
“Faerch is recognised as a leader within circular food packaging solutions. It has a great team, a strong customer offering and distinctive operational capabilities. A.P. Moller Holding will support an acceleration of Faerch’s leadership positions and increase investments in additional recycling facilities to meet the high customer demand,” said Jan Nielsen, Chief Investment Officer at A.P. Moller Holding.
The sale of Faerch A/S is expected to close in the first quarter of 2021, subject to regulatory approvals.
About Advent International
Founded in 1984, Advent International is one of the largest and most experienced global private equity investors. The firm has invested in more than 360 private equity transactions in 41 countries, and as of June 30, 2020, had $58 billion in assets under management, excluding the $2 billion recently raised for its latest Latin America fund, LAPEF VII. With 15 offices in 12 countries, Advent has established a globally integrated team of over 200 investment professionals across North America, Europe, Latin America and Asia. The firm focuses on investments in five core sectors, including retail, consumer and leisure; technology; business and financial services; healthcare; and industrial. After more than 35 years dedicated to international investing, Advent remains committed to partnering with management teams to deliver sustained revenue and earnings growth for its portfolio companies.
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About Aareon AG
Founded in 1969 and headquartered in Holstebro, Denmark, Faerch is a leading European manufacturer of sustainable food packaging solutions within the Ready Meals, Protein, Food-to-Go and Dairy segments. Faerch has taken the lead in making rigid food packaging circular with products made from up to 100% of recycled content and fully recyclable to new food grade products. As an integrated recycler, Faerch recycles food trays back into new food grade products at industrial scale.
Faerch Group employs more than 1,400 people, spread across 12 production sites in Denmark, Great Britain, France, Spain, the Czech Republic and the Netherlands. Sales offices cover all of Europe. With the recently announced acquisition of the Sirap food packaging business in Italy, Poland and Spain, close to 1,000 additional employees in 5 production sites will join the Group.
For more information, visit: www.faerch.com