Partners Group has provided French manufacturer Alltub with a €74 million unitranche loan, the alternative credit provider announced in a statement. Alltub is majority controlled by Los Angeles-based private equity firm, Aurora Capital Group.
The tenor of the facility is between six- and seven-years, PDI understands.
Aurora originally intended to sell the company. The refinancing arose as an alternative option when Alltub’s strong performance convinced Aurora to hold onto the asset and expand the business before pursuing an exit strategy, Robin Thywissen, who leads the French activities within Partners Group’s private debt team, told PDI.
The non-amortising loan replaces a smaller bullet facility that Aurora arranged when it bought a controlling stake in the company in 2011. Alltub was advised in the process by Rothschild, Thywissen said.
The mandate was awarded following a competitive tender process. Partners Group had a pre-existing relationship with Aurora, having lent to some of the firm’s other portfolio companies via its US unit, explained Thywissen.
Alltub makes aluminium packaging for a range of sectors including cosmetics and the pharmaceutical sectors as well as industry and food. It produces collapsible or squeezable aluminium tubes for cosmetic or medicated creams as well as food products like tomato purée. The firm produces around 1.4 billion aluminium tubes a year as well as cartridges and aerosol cans, according to the statement.
The firm has been boosted by the drop in aluminium prices over the past few years, said Thywissen, and hopes to capitalise on its performance by expanding into new markets. The increased credit line is designed to support that planned growth, he added.
Alltub operates four manufacturing plants in Europe and Latin America. It hopes to follow its established customer base into markets in which those customers are selling or increasing sales including Asia and South America.
“We have a strong presence in Asia and we think there is a natural fit between this type of global mid-market company and Partners Group,” Thywissen said.
Zug, Switzerland-headquartered Partners Group has offices in San Francisco, Houston, New York, São Paulo, London, Guernsey, Paris, Luxembourg, Milan, Munich, Dubai, Mumbai, Singapore, Shanghai, Seoul, Tokyo and Sydney.
Last month, Partners Group announced that it had raised $700 million for its debut multi-asset debt fund.