In 1988 Cinven led the groundbreaking €1.3 billion buyout of Reedpack from Reed International.
Reedpack comprised a number of complementary businesses in paper, packaging and office supply wholesaling. A pioneer in papermaking technology, the company had market leadership in folding cartons and rigid plastic containers. The third segment of Reedpack's business, office supply wholesaling, had also achieved leadership in a fast growing market.
At the time, Reedpack had 12,350 employees operating from 83 locations, primarily in the UK.
In one of the largest buyouts completed in Europe at the time, Cinven saw the opportunity to improve profitability through selective capital investment and cost cutting.
Capacity constraints in the business had resulted in high costs and low productivity in some businesses. A capital expenditure facility was put in place for ongoing use by management.
The broad spread of manufacturing interests and the leading position in many markets coupled with the sheer scale of the business, provided a strong and resilient base for business development.
Reedpack was sold in July 1990.
Multiple returned on investment: 3x