Cinven supported the management buyout of Cundell from the Lawson Mardon Group in April 1986. Cundell was a specialist manufacturer of corrugated packaging material. Its product range was based on traditional boxes but it differentiated itself through the quality of its products and service, through technology and design innovation and through various printing techniques applied to the basic product line.
A well-established and successful business, it was led by a skilled and experienced management team. It was cash generative and a capital investment programme had just been completed. There was scope for growth in its added value product range and it enjoyed a strong and loyal customer base. The plan was to seek a listing for the business within a short period of the buyout.
The business progressed ahead of projections with the result that it was listed on the London Stock Exchange just a year later in April 1987. Cinven realised some of its investment at flotation but retained a significant stake in the business. In January 1989, there was an agreed bid for Cundell by Jefferson Smurfit, allowing Cinven to realise the balance of its investment.
Multiple returned on original investment: 3x