Candover sells packaging firm

Private equity company Candover said yesterday that it has sold Irish print and packaging business Clondalkin to rival venture capital business Warburg Pincus for ?630m (£430m).

Clondalkin makes products such as the waxed paper wrappers for Starburst sweets and Tunes and packaging for toilet paper. Candover bought the company in November 1999 for ?550m, and Candover director Ian Gray said it had taken over a year to sell it.

"Clondalkin has been an excellent investment for our 1997 fund, generating a return in excess of two times. We have effectively more than doubled our investment in the company to more than £140m. We look to buy and sell a company within a three to five-year timescale and we had Clondalkin for over four years so it was the right time to sell."

Dalip Pathak, head of European operations at Warburg Pincus, a US-based company, said: "Clondalkin provides us with a platform to leverage our global capability. This is our largest transaction in Europe." In 2002, Clondalkin's revenue was derived from 55pc in Europe, 24pc in the UK and Ireland, and 21pc in the US.

Norbert McDermott, group chief executive officer for Clondalkin, said: "This transaction represents a fantastic opportunity for Clondalkin. We are delighted to have the opportunity to work with a global private equity firm with a proven track record such as Warburg Pincus. The firm's financial support and international experience will help us to develop and grow in all our geographical markets."

In a separate private equity deal, debt purchase company Cabot Financial has changed hands in a £100m management buyout backed by Barclays Private Equity. Barclays bought it from Credit Suisse First Boston's private equity arm and paid £43m for an 80pc stake alongside Vision Capital, which also injected equity of £14m.

The management team led by Ken Maynard and Glen Crawford have a 20pc stake.