KKR announced yesterday the closing of its investment in CMC Machinery, the leading manufacturer of automated packaging solutions in Italy (see the press release here).
The operation, which sees KKR in the majority with 70% of the capital and the Ponti family that keeps the remaining 30% and the leadership of the company, was announced at the end of October (see here a previous article by BeBeez) and is the first acquisition of the KKR Global Impact Fund in Italy and the fourth in Europe, after those in MasterD, the leading company in professional training in Spain; in The Citation Group, a leading provider of subscription services relating to the human resources, labor law and health and safety sectors for SMEs in the UK; and Viridor, the UK leader in responsible waste management and recycling.
KKR Global Impact, which closed funding last February at 1.3 billion dollars, of which 130 millions invested from the balance sheet of KKR itself (see the press release here), invests in companies in Europe, Asia and the Americas , which present an intrinsic alignment between financial performance and social impact. In particular, the fund invests in companies capable of contributing in a measurable way to the achievement of one or more United Nations Sustainable Development Goals. CMC Machinery’s activity contributes directly to the achievement of objective number 12 (Responsible consumption and production model), as the innovative packaging solution offered by the company is able to adapt to the size of the product, allowing customers to ecommerce sector to use fewer raw materials, reducing waste.
Founded in 1980 and based in Città di Castello (Perugia), CMC thanks to its experience in the construction of machinery for packaging and mailing gained in more than 40 years of activity, has in fact been able to innovate the world of e-commerce by responding in full to the emerging needs of large operators, from the management of operating peaks to the reduction of costs and energy optimization. The “CartonWrap”, in fact, with its ability to create customized packaging significantly reduces the waste of cardboard and plastic, as well as the transport costs associated with the products, with a significant positive impact on the environment.
Last May the company closed a capital increase of 2.5 million euros and issued two minibonds for a total of 7 million euros, fully structured and subscribed by Riello Investimenti Partners through the private debt fund Impresa Italia (see here a previous article by BeBeez).
In 2019 Cmc generated a turnover of approximately 61 million, recording a growth of 17% compared to the previous year and a CAGR of 17-19 of 35%, with a margin of 16% at the adjusted ebitda level. Thanks to a rapidly expanding order book, the company’s 2020-2023 business plan provides for further significant growth in the coming years. Francesco and Lorenzo Ponti, sons of the founder Giuseppe Ponti, will respectively cover the roles of ceo and coo.
Giuseppe Ponti commented: “We are very proud to be able to count on an investor like KKR and his view in line with ours in wanting to continue to increase innovations in the packaging and ecommerce sectors. Thanks to the support of KKR, we are excited to continue our path, expanding our activities that will remain firmly rooted in Umbria and offering sustainable packaging solutions in an increasingly global market ”.
Stanislas de Joussineau, director of KKR and head of Global Impact in EMEA, said: “CMC Machinery’s innovative market-leading solution in sustainable packaging is perfectly in line with the objectives of KKR’s mission: investing in companies that offer solutions capable of responding to the main challenges of the sector. We are thrilled to have the opportunity to partner with the Ponti family to continue our commitment to the development of innovative solutions and the promotion of sustainability throughout the global retail sector, especially at such a particular time, when retailers are looking for to increasingly minimize its environmental impact “.
Pedro Ramos, principal of KKR’s Global Impact team for the EMEA area, added: “CMC Machinery is an established leader in the reference sector, testifying to the passion and commitment of the Ponti family and the team that have enabled them to expand the production plants in Città di Castello to meet the needs of customers all over the world. We look forward to supporting the company on its growth path by offering it access to the global platform and KKR resources “.
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