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US: Charter NEX auction ends at $1.5bn

By  |  April 16, 2017

US buyout firm Leonard Green & Partners has prevailed in an auction to acquire Charter NEX Films, a US manufacturer of specialty films for the food and medical industries, for $1.5 billion, including debt, people familiar with the matter said.

The deal values Charter NEX at around 14 times its 12-month earnings before interest, tax, depreciation and amortization, a frothy valuation for a packaging company that indicates private equity firms are having to pay top dollar to acquire coveted assets amid a buoyant market, the sources said on Sunday.

A deal could be announced in the coming weeks, the sources said, asking not to be identified because the sale process is confidential. Leonard Green and Charter NEX did not respond to requests for comment, while Pamplona Capital Management, the private equity owner of Charter NEX, declined to comment.

Full Content: Reuters

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