For generations, shareholders and the management of WEIG Group, headquartered in Mayen, and Buchmann Kartonfabrik, headquartered in Rinntal, shared a similar understanding of the industry as well as executing their businesses. Both companies were well-known, independent, family-managed companies in the European cartonboard industry.
When the shareholders of Buchmann announced their willingness to sell the company, WEIG recognised the potential synergies and valuable market share gains that could be realised.
WEIG mandated us for its expertise in navigating the complex and competitive journey of a structured acquisition and its financing.
Set against a challenging industry and a geopolitical backdrop, a highly strategic approach was devised to enable the acquisition and secure the necessary financing. The end-to-end method that was implemented involved data-driven insights, M&A tactics, deep analysis, robust relationships, and finding the right financing partner.
Set against a challenging industry and a geopolitical backdrop, a highly strategic approach was devised to enable the acquisition and secure the necessary financing.
Successfully securing financing
Rising energy prices, generally weak and to some extent cyclical industry performance, and a challenging interest rate environment increased the need for a carefully prepared financing discussion with banks. The fact that this was the largest financial transaction in the company’s history was also a potential hurdle to securing lender buy-in. However, we managed to gain the cooperation of a diversified banking consortium with relevant industry experience. We also successfully facilitated the integration of bilateral loans into the syndicated credit facility, a rather complex task that involved harmonising credit documentation while considering the envisaged holding structure as part of the bridge take-out financing.
Family firms join forces
With very strong results achieved in 2023, WEIG’s strategic growth ambitions are on track, despite the acquisition of Buchmann in a challenging industry environment. Now the third-largest European player in the folding cartonboard industry, WEIG is equipped to further strengthen its market position and develop relationships with customers and suppliers. The combined technological expertise of the two entities will also enable WEIG to further optimise its product portfolio and increase its sales volume. As we assist in building on this success and looking to the future, Clearwater is positioned to support WEIG and conduct the refinancing process.
The plan on paper
Our relationship with WEIG began at the beginning of 2021 when they were looking for ways to further develop the business of the family-owned company in the long term. About one year later, the opportunity to acquire Buchmann arose. It was an extremely attractive prospect for WEIG, as Buchmann was a recognised player in the folding cartonboard subsegment, producing 260,000 tonnes of recycled cartonboard a year. The cyclical nature of the industry especially following significant energy price swings in 2021/22 added to the challenge, particularly in terms of securing financing.
Measurement, models, and mapping
Given the competition and the need to secure financing, we built a merchant model that simulated the synergy effects of the potential acquisition. This was crucial for calculating a precise valuation and for demonstrating the prospective success of this transaction to banks. In addition to providing our technical capabilities, we also supported WEIG in confidently navigating each stage of the structured acquisition.
The Clearwater difference
A combination of empathy, technical expertise, and our deep understanding of the structured acquisition process equipped us to help this client navigate M&A and financing complexities.
1 Deploy innovative technology capabilities and deep expertise
2 Build bespoke tools and leverage data to achieve precise modelling
3 Leverage key regional banking contacts to maximise options and secure financing
4 Demonstrate understanding and empathy for the parties involved
Clearwater Advisers
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