Aerocan is a leading European manufacturer of aluminium aerosol cans, used for deodorants, cosmetics and in the pharmaceutical industry. When Equistone Partners Europe invested in Aerocan in 2008, the business needed investment to upgrade its production lines in its Czech factory and support through the financial crisis.
In addition to vital funding, Equistone provided assistance in modernising and expanding the company’s manufacturing plants as well as helping to sign up customers in new markets in Southern Europe and North Africa. With a 70% increase in profits and expansion into emerging markets well underway, Equistone sold Aerocan to Ball Corporation in 2011.
What did the business need?
- Rationalisation and cost monitoring to improve profitability
- Increased sales in existing markets
- Expansion in high-growth and developing markets, such as Turkey and Russia
- Investment to maintain production plants
- Increased manufacturing capacity in Eastern Europe
How did private equity backing create lasting value?
- Invested in production plants throughout market downturn
- Enhanced supply agreements with large key customers
- Added major new clients to diversify client base
- Introduced additional customers in Southern Europe, North Africa and Turkey
- Implemented cost-cutting measures to reduce fixed costs and improve industrial process
What outcomes did private equity investment achieve?
- Increased profits by 70% over three-year period
- Gained market share to offset the loss of business following market downturn
- Secured long-term growth for Aerocan through commercial agreements to enter emerging markets
- Introduced two new product lines in 2010 (adding 15-20% of capacity)
- Sold Aerocan to leading metal packaging group Ball Corporation to extend company’s reach outside Europe