January 22, 2019 | Press Release
HQ Equita supports The Packaging Group in successful refinancing
Bad Homburg, 16 January, 2019. The Packaging Group (TPG), a company in the HQ Equita portfolio, has successfully completed its refinancing scheduled for 2018. TPG came into existence in 2018 through the merger of FAWEMA and HDG (formerly: Steindl Group) under HQ Equita. The company is a worldwide leader in the development and production of premium packaging machines for the foodstuffs, animal feed and chemical industries.
The financing volume provided by two banks supported TPG in extending its technical competence and geographic reach by means of carefully-targeted acquisitions, in order to further expand its market position as a globally-active platform in the packaging machinery market. The strengthened capital base also permits TPG to extend one production facility and erect a third, highly-modern production facility on a green field site. Furthermore, the intention is to accelerate investment in sales, as well as research and development, and to further institutionalise the organisation.
Peter Steindl, CEO of TPG: “The refinancing permits us to accelerate the planned further development. By investing in research and development, as well as in sales and new technologies, we want to promote growth, in both geographic and technological regards. Augmented by carefully-targeted acquisitions.”
Florian Wiemken, responsible for the investment at HQ Equita: “The refinancing is a significant element of the strategy in order to secure organic and anorganic growth at TPG. HQ Equita supports TPG in expanding its market position as the worldwide leading packaging machine manufacturer in the premium segment. As shareholders, we actively support the structural growth and internationalisation of TPG.”
TPG develops and supplies packaging machines for filling dry, free-flowing bulk materials into a variety of paper or plastic laminate bags. The machines offer packaging solutions for flour, sugar, baking mixtures, confectionary, animal feed and a variety of chemical products. In addition, around a quarter of TPG’s turnover is accounted for by the service and spare parts business.
The new financing was arranged through a consortium consisting of the Commerzbank and Oldenburgische Landesbank (OLB). During the refinancing process, TPG has been supported by Alantra as debt advisor. MSLaw from Frankfurt served as legal advisor. The bank consortium was advised by Ashurst LLP.
About The Packaging Group
The Packaging Group is a worldwide leading producer of packaging machines for filling dry, free-flowing bulk materials into various types of paper or plastic laminate bags. TPG came into being in 2018 as a result of the merger of FAWEMA and HDG (formerly Steindl Group). Around 210 people are employed by TPG, working at four international production and sales sites. The product portfolio includes servo- and cam-controlled horizontal form, fill and seal machines with a rotary system (HDG) as well as servo-controlled high-performance packaging machines with chamber transport, and vertical, intermittent and continuous fill and seal machines (FAWEMA).