St. Regis was one of the largest producers of paper and corrugated packaging in the UK. It was owned by Champion Corporation who had decided to sell its operations outside of the US. In 1985, St. Regis was bought by its management team supported by Cinven.
The company had achieved several years of sales and profit growth in a market that was itself static. The business had substantial room for expansion through providing UK manufactured substitute materials for those currently being imported. Its competitive advantage was brought about through its heavy use of wastepaper pulp which was both cheaper than newly produced wood pulp and less volatile in its pricing.
The business progressed well, in line with its strategy. Less than a year after the buyout, the business received an offer from a UK trade purchaser. There was a good fit between the activities of the proposed acquirer and that of St. Regis and the offer was accepted.
Multiple returned on investment: 2x