Meat casings manufacturer Kalle is sold to Clayton, Dubilier & Rice
Kalle is a leading global supplier of industrially-produced meat product casings. Silverfleet Capital expects to achieve an investment multiple of 3.5 on an investment of €71.5 million. The Internal Rate of Return (IRR) is 22.5 percent.
Silverfleet Capital acquired a majority stake in the Kalle Group in 2009. Today, Kalle employs around 1,700 staff operating from 16 production facilities in 9 countries, which serve more than 100 countries globally. The company has doubled its turnover since 1997 to over €281 million in 2015. The primary drivers for this robust development are the company’s innovative product range and its expansion into high-growth regions. Kalle is a major brand in th US and Europe, and is building its profile in South America and Asia.
Alongside geographic expansion, the company’s innovative capability has been the other major driver of growth. Over the past few years, Kalle has redefined the protein casing market with its new range of value-added casings. Value is added by eliminating a number of key steps in the meat production process. For example, they can be used to transfer smoke, colour and/or seasoning directly onto the filling while the product is being cooked, thereby dispensing with several costly operations. These casings are the fastest-growing segment in the Kalle Group.
Guido May, a partner at Silverfleet Capital, said: “Silverfleet supported Kalle’s international expansion and thus helped to drive rapid growth. Kalle is a very profitable business in an attractive market with non-cyclical growth. Thanks to its innovative capability, which is unique within the industry, Kalle is constantly bringing new top-selling products to market. We would like to thank the Kalle management team for what has always been a close and very successful working relationship and a good example of Silverfleet Capital’s proven ‘buy to build’ approach. Kalle is now excellently positioned as a leading global supplier of industrially produced casings for meat products. The prospects for continued growth over the coming years are thus very good.”
Dr. Carsten Heldmann, CEO of Kalle, said: “Over the past seven years, we have enjoyed very profitable growth and continued to develop our technological edge and regional footprint. Silverfleet Capital has always been very supportive of our innovation-led approach and has backed the growth of our product range with impressive success. While we look back with gratitude, we are now very excited about developing our future together with CD&R, supporting us in making full use of our opportunities and raising Kalle to the next level."
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Ultium Cells LLC/Li-Cycle: Sustainable Battery Manufacturing
Ultium Cells LLC - a joint venture between General Motors and LG Energy Solutions - has announced its latest collaboration with Li-Cycle. Joining forces the two have set ambitions to expand recycling in North America, recycling up to 100% of the scrap materials in battery cell manufacturing
What is Ultium Cells LLC?
Announcing their partnership in December 2019, General Motors (GM) and LG Energy Solutions established Ultium Cells LLC with a mission to “ensure excellence of Battery Cell Manufacturing through implementation of best practices from each company to contribute [to the] expansion of a Zero Emission propulsion on a global scale.”
Who is Li-Cycle?
Founded in 2016, Li-Cycle leverages innovative solutions to address emerging and urgent challenges around the world.
As the use of Lithium-ion rechargeable batteries in automotive, industrial energy storage, and consumer electronic applications rises, Li-Cycle believes that “the world needs improved technology and supply chain innovations to better recycle these batteries, while also meeting the rapidly growing demand for critical and scarce battery-grade materials.”
Why are Ultium Cells LLC and Li-Cycle join forces?
By joining forces to expand the recycling of scrap materials in battery cell manufacturing in North America, the new recycling process will allow Ultium Cells LLC to recycle cobalt, nickel, lithium, graphite, copper, manganese and aluminum.
“95% of these materials can be used in the production of new batteries or for adjacent industries,” says GM, who explains that the new hydrometallurgical process emits 30% less greenhouse gases (GHGs) than traditional processes, minimising the environmental impact. Use of this process will begin later in the year (2021).
"Our combined efforts with Ultium Cells will be instrumental in redirecting battery manufacturing scrap from landfills and returning a substantial amount of valuable battery-grade materials back into the battery supply chain. This partnership is a critical step forward in advancing our proven lithium-ion resource recovery technology as a more sustainable alternative to mining, " said Ajay Kochhar, President, CEO and co-founder of Li-Cycle.
"GM's zero-waste initiative aims to divert more than 90% of its manufacturing waste from landfills and incineration globally by 2025. Now, we're going to work closely with Ultium Cells and Li-Cycle to help the industry get even better use out of the materials,” added Ken Morris, Vice President of Electric and Autonomous Vehicles, GM.
Since 2013, GM has recycled or reused 100% of the battery packs it has received from customers, with most current GM EVs repaired with refurbished packs.
"We strive to make more with less waste and energy expended. This is a crucial step in improving the sustainability of our components and manufacturing processes,” concluded Thomas Gallagher, Chief Operating Officer, Ultium Cells LLC.