Mavco and Avenue Capital Group acquire Hubergroup for global growth

The deal is projected as a strategic partnership to accelerate global growth, but regulatory approvals are still pending

Mavco Investments, a private investment vehicle belonging to select members of the Murugappa family, and funds managed by Avenue Capital Group, a global investment firm, have acquired Hubergroup, a global leader in specialty chemicals and print solutions. According to an industry source, the deal is expected to have an enterprise value of Euro 462 million.

 

Projected as a strategic partnership to accelerate global growth, the deal promises synergies between Mavco’s operational expertise and Avenue’s financial acumen. However, with regulatory approvals still pending, the roadmap for Hubergroup’s transformation remains unclear.

 

The consortium will acquire all shares in the company from the current owner, Cornelius Treuhand Holding. This partnership represents a significant milestone in Hubergroup’s journey towards becoming an internationally leading, fully integrated, packaging-focused print solutions provider with an expanding chemicals business, the company said in a statement.

 

“The company’s pivot towards packaging-focused print solutions and an expanding chemicals business aligns with global demand, but execution risks could complicate the ambitious growth agenda. What compounds the issue is the significant debt on the company’s books. Hubergroup has more than Euro 300 million in debt,” said an industry source.

 

M A M Arunachalam (also known as Arun Murugappan), director of Mavco Investments, said: “We are excited to announce our partnership with Hubergroup, an organisation with a rich heritage spanning multiple centuries. This collaboration marks our strategic entry into global print and packaging solutions and allied products. Together with Avenue Capital Group, we are committed to accelerating Hubergroup’s growth in key international markets and enhancing its ability to deliver exceptional value to all its business partners worldwide.”

 

Pankaj Goel, head of partnerships, Asia Pacific, and Rohit Santani, head of India for Avenue Capital Group, said: “We are excited to partner with Mavco to unlock Hubergroup’s potential in new and existing markets and deliver robust and profitable growth in the years to come. Mavco’s strategic vision and operational expertise combined with Hubergroup’s drive for innovation and growth potential fits perfectly with our approach to back transformative businesses.”