Montagu Private Equity, the leading European private equity house, today announces the acquisition of LINPAC Group for a consideration of £860 million. The transaction has been structured through a newly established financing vehicle, Picnal Ltd, set up by Montagu and LINPAC's senior management team. Under the terms of the contract, Montagu Private Equity will take a majority equity stake in the business with a debt and mezzanine package from Deutsche Bank. 

Headquartered in Birmingham, LINPAC is a diversified supplier of paper and plastics-based packaging, returnable packaging systems and plastic automotive components. It manufactures in five continents and sells in nearly every country of the world. For the year ended December 2002, LINPAC reported revenues of £1.2 billion. 

The offer, which has been recommended by the LINPAC Board, is subject to shareholder and regulatory consent and includes an option for the existing shareholders, senior management team and 12,000 employees to make a substantial reinvestment in the business. 

Montagu Private Equity will be working closely with the current LINPAC management team. Michael Cornish, Chairman, will remain on the Board as a Non-Executive Director and David Williams, currently Group Managing Director, will become Executive Chairman. Mark Tentori, Finance Director and Bob Lang also remain on the Board. Phil Goodwin and James Roddis from Montagu Private Equity will join the Board as Non-Executive Directors. 

Phil Goodwin, Head of UK Investment at Montagu Private Equity, commented: "LINPAC is exactly the type of top quality business that we look to invest in. The company has an enviable track record of growth spanning nearly half a century, and benefits from a top rate management team. We look forward to working with LINPAC to ensure the continued success and growth of the business. I am also delighted that existing shareholders will continue to play a key role in the future of the business." 

David Williams, Group Managing Director of LINPAC, commented: "The announcement today marks the next stage in the successful growth of the company. From its foundation over forty years ago, the business has grown into a leading international packaging company with operations in over 30 countries. Partnering with Montagu will enable us to build on the achievements of everyone so far, and ensures a continuing role of the Cornish families in the operation and ownership of LINPAC. We are delighted to have found in Montagu, a financial partner wholly in sympathy with the values and strategy of our company. I confidently look forward to the next stage in LINPAC's growth."