BC Partners and PSP Investments to acquire Israeli household manufacturer Keter Group
Funds advised by BC Partners (“BC Partners”), a leading private equity firm, and the Public Sector Pension Investment Board (“PSP Investments”), one of Canada’s largest pension investment managers, have reached an agreement to acquire a majority stake in Keter Group (“Keter” or the “Company”), the world’s largest producer of quality resin consumer products, from its founders, the Sagol family. The transaction, which is subject to customary approvals and is expected to close in Q4 2016, will see the Sagol family retain a minority stake and reinvest alongside BC Partners.
Headquartered in Israel, Keter designs, engineers, produces and distributes a wide range of consumer goods worldwide across multiple categories (e.g. indoor and outdoor furniture, home accessories, hardware products). These are sold globally through a distribution network of over 25,000 retail outlets, with the company enjoying strong ties to top retailers in all its markets.
The Company operates a portfolio of leading brands with decades of market presence and high consumer awareness. Keter is known for its in-house design capabilities, driven by consumer insight, which translate into an exceptional rate of innovation (with 50% of revenues coming from products launched over the past three years).
The Company was founded in 1948 and has been transformed by the Sagol family from a small workshop in Jaffa into a global leader powered by unrivalled product development capabilities, industry-leading intellectual property and manufacturing know-how, unmatched production scale and a global commercial network. Today the company operates 18 factories across nine countries, with over 4,000 employees around the world.
Sami Sagol, Founder of the Keter group, commented:
“We are delighted to have reached this agreement. Our partnership with BC Partners will enable us to accelerate the development of Keter and we look forward to working with BC Partners on this new chapter of Keter’s journey. BC Partners has a distinguished track record of developing family-owned businesses and helping them realise their full potential. They share the same vision for the Company and are committed to promote Keter’s differentiated culture and core values.”
Jean-Baptiste Wautier, Managing Partner at BC Partners, commented:
“Keter is a thriving, innovative and fast growing market leader, with highly distinctive competitive strengths and a strong corporate culture. We are highly enthusiastic about Keter’s development opportunities and we look forward to pursuing Sami Sagol’s ambitious growth strategy, fuelled by investments in sales & marketing, product innovation, operational excellence and selective acquisitions.”
Guthrie Stewart, Senior Vice President, Global Head of Private Investments, PSP Investments added:
“Our investment in Keter is another example of our private equity strategy to invest in innovative companies with attractive growth prospects, alongside select partners that provide sector expertise and geographic diversity. Sami and Itzhak Sagol have built Keter into a global leader and we look forward to collaborating with BC Partners, the Sagol family and Keter’s leadership to supporting the Company through the next stage of its global growth.”
Rothschild, White & Case and EY acted as advisers to the Sagol family. UBS and J.P. Morgan served as M&A advisers, Linklaters as legal advisers and EY as accounting and tax advisers to BC Partners and PSP Investments.
About BC Partners
BC Partners is a leading international private equity firm with over €12 billion of assets under management.
Established in 1986, BC Partners has played an active role in developing the European buy-out market for nearly three decades. BC Partners executives operate as an integrated team through the firm’s offices in Europe and North America, acquiring and developing businesses to create value in partnership with management. Since inception, BC Partners has completed 91 investments in companies with a total enterprise value of nearly €100 billion and is currently investing its ninth fund, which was raised in 2011 with total commitments of €6.7 billion.
Keter Plastic is one of the world’s leading manufacturers and marketers of resin-based household and garden consumer products, which are sold in 90 countries and found in more than 25,000 retail outlets worldwide. With a focus on innovation driven by consumer insight, Keter provides an impressive range of furniture, storage and organization solutions. Each and every Keter product is thoughtfully engineered to combine the durability of plastic, attractive design and unparalleled functionality. Our ongoing commitment to simplify and enhance the daily lives of consumers has been key to our global success.
About PSP Investments
The Public Sector Pension Investment Board (PSP Investments) is one of Canada’s largest pension investment managers with $116.8 billion of net assets under management as at March 31, 2016. It manages a diversified global portfolio composed of investments in public financial markets, private equity, real estate, infrastructure, natural resources and private debt. Established in 1999, PSP Investments manages net contributions to the pension funds of the federal Public Service, the Canadian Armed Forces, the Royal Canadian Mounted Police and the Reserve Force. Headquartered in Ottawa, PSP Investments has its principal business office in Montréal and offices in New York and London.
Source : PSP Investments Press Release