Aug. 25 (Bloomberg) -- Private-equity firm Oak Hill Capital Partners LP agreed to buy Berlin Packaging LLC, a producer of containers and closures, from Investcorp SA in a deal valued at $1.43 billion.
The acquisition, subject to regulatory approvals, is expected to close in the third quarter, New York-based Oak Hill said today in a statement.
The deal would be the biggest in the metal- and glass packaging industry since Crown Holdings Inc. bought Spanish food-can maker Mivisa Envases SAU for $1.63 billion in April, according to data compiled by Bloomberg.
Berlin, founded in 1898, operates more than 90 sales and warehouse locations in North America, according to the statement. Chairman and Chief Executive Officer Andrew Berlin is also a limited partner of the Chicago White Sox baseball team. Oak Hill said it will work with Berlin and his company’s current management team.
Oak Hill is paying about 14 times Chicago-based Berlin’s earnings before interest, taxes, depreciation and amortization of about $100 million, the Wall Street Journal reported yesterday. The median Ebitda multiple of three comparable deals from the past two years is 8, according to the data compiled by Bloomberg.
Berlin was advised by Barclays Plc and Deutsche Bank AG. Gibson, Dunn & Crutcher LLP was legal counsel for Berlin and Investcorp. Morgan Stanley advised Oak Hill. Paul, Weiss, Rifkind, Wharton & Garrison LLP is Oak Hill’s legal counsel.
Deutsche Bank and Morgan Stanley are arranging financing for the deal.
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