Ownership of CeDo, one of Europe’s leading manufacturers of household disposables, will change from a financial investor in Germany to one based in London, with the new owner promising some changes. Delton AG of Bad Homburg, Germany intends to sell CeDo to Rutland Partners LLP, a private equity partnership based in London for an undisclosed sum. The transaction is conditional on merger control clearances and expected to be completed within three months. Full details of the acquisition and its terms will be announced following completion.
CeDo processes plastics, metal, and paper for its own label and proprietary products such as trash bags, trash can liners, cling film, and aluminum foil. Most of its business is realized in the U.K., German, and French markets although it also reports increased demand in recent years in Eastern Europe. CeDo reports it is profitable on annual sales of around £185 million (€210 million).
In a release, Rutland reports it will implement “a wide-ranging plan of operational improvements across the business” to include further optimizing manufacturing efficiency in all plants and a close focus on management of working capital. Rutland will invest from its £322 million fund, Rutland Fund II, to support the acquisition, with the balance of the funding coming from debt facilities provided by Lloyds TSB Commercial Finance and Indigo Capital LLP.
CeDo runs its own plastics recycling facility in the Netherlands and uses the output of that site to help guarantee it sufficient recyclate capacity to support sustainability initiatives by a number of its customers. CeDo has production facilities in the Netherlands, Poland, England, and China. —[email protected]