Montagu Private Equity ("Montagu"), one of Europe's leading private equity investors, announces the sale of Kalle, the sausage casings and sponge cloth producer, to Silverfleet Capital for €212.5m. The deal is subject to antitrust approval.

Montagu led and arranged the management buyout of Kalle in 2004. Since then, Montagu has invested close to €50m in the company's growth, of which €28m was spent on modernisation projects as well as another €20m in R&D. Sizeable investment was made into a green-field production site in the US, thus providing access to the world's largest processed meat market and the company saw increased sales in the US from €5m in 2004 to close to €25m in 2008. Under Montagu's ownership, Kalle invested substantially in the launch of new products and further saw a 5% increase in the workforce. As a result, Kalle now generates over €200m of sales, an increase of over 22%. 

Peter Kroha, Geschäftsführer, Montagu Private Equity in Germany said: 

"Kalle achieved key strategic goals during our ownership and Montagu is pleased with the way in which this unique company has developed."

Nico Helling, Geschäftsführer, Montagu Private Equity in Germany said: 

"In the current market conditions, private equity has seen a decline in the number and volume of investments made. However, the buyout of Kalle shows that successful transactions are feasible in this market for sound companies with strong investment programmes and exciting growth prospects."

Walter Niederstätter, CEO of Kalle, said:

"Kalle is an important player in the meat processing industry, and our position has been strengthened significantly by Montagu's support for the investments we have made in growth and innovation. We are very confident about our future and with our new partner Silverfleet Capital, we have ambitious plans for Kalle, to continue growth with a new focus on acquisitions." 

Montagu Private Equity was advised by Sal. Oppenheim (M&A advisers) and Clifford Chance (legal advisers).

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