Warburg-Carlyle Stake Deal Said to Value Duravant at $5 Billion

(Bloomberg) -- Private equity firm Warburg Pincus has agreed to sell a stake in food processing and packaging equipment maker Duravant to peer Carlyle Group Inc.

The deal values the Downers Grove, Illinois-based company at more than $5 billion, according to people familiar with the matter, who asked not to be identified because they weren’t authorized to speak publicly. Representatives for Warburg and Carlyle declined to comment on valuation and terms.

Warburg, which agreed to buy Duravant from peer Odyssey Investment Partners for an undisclosed sum in 2017, hired advisers this year to look at options for the company. 

“Through transformative opportunities such as the launch of the nVenia packaging platform, the creation of the SupportPro aftermarket organization and the recent acquisition of Foodmate, Duravant has been able to meet the increased demand for automation products in each of its key segments and offer an expanded set of solutions to its customers,” Jeff Goldfaden, managing director and head of industrials at Warburg Pincus, said in a statement.

The deal adds to a string of large packaging deals this year, including Ardagh Group SA agreeing to sell its beverage can business to blank-check company Gores Holdings V in an $8.5 billion deal. Also, KPS Capital agreed to buy a majority stake in Crown Holdings Inc. metal can business in a deal valued at more than $2 billion. 

Duravant, led by President and Chief Executive Officer Mike Kachmer, makes automation equipment used in packaging, food processing and materials handling.

“We’re thrilled to be partnering with Mike, the Duravant team, and Warburg Pincus on this investment, which aligns with our long-standing strategy to back industry leaders,” said Wes Bieligk, a managing director specializing in industrial and transportation at Carlyle.

“Duravant is a world-class business with a long-term track record of growth and is well positioned to benefit from attractive automation trends across its end markets,” he said.

Goldman Sachs Group Inc, Jefferies Group LLC and William Blair served as financial advisers for Duravant, while Cleary Gottlieb Steen & Hamilton served as legal adviser. Latham & Watkins served as legal adviser to Carlyle. 

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