Epiris has announced the realisation of Electra Private Equity’s interest in Innovia Group, a leading manufacturer of speciality films and substrate for polymer banknotes.
Innovia Group has been sold to CCL Industries for an enterprise value of $1.13 billion. The transaction is subject to regulatory and change of control approvals as well as customary completion procedures with closing expected by the end of the first quarter, 2017. Based on today’s exchange rates, Electra would receive proceeds from the sale of £106 million, an uplift of £26 million or 32% and equivalent to an increase in its NAV of 52 pence per share, on the valuation of the investment at 30 September. This equates to a return of 3.2x cost, and an IRR of 51%.
Epiris invested €40 million as a cornerstone investor in The Smithfield Group’s acquisition of Innovia in 2014 and is represented on the board of the business by chief investment partner, Bill Priestley who said: “We are delighted with the outcome of our investment in Innovia. The business has been transformed with the investment in new manufacturing capacity and with the sale of the Cello packaging business. Today’s announcement marks the conclusion of a period of significant strategic progress for the business.”
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