Thursday, 28 February 2019 17:16

Buy-and-Build: A Powerful PE Strategy, but Hard to Pull Off

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When Investcorp acquired Chicago’s Berlin Packaging for around $410 million in 2007, it was already a strong player in the container business. Yet seven years and four strategic acquisitions later, Investcorp sold out to Oak Hill Capital Partners for $1.43 billion, creating a better than three times return. Since then, Oak Hill and Andrew Berlin, the company’s well-regarded CEO, have doubled down on the buy-and-build strategy with four more major acquisitions and a scattering of smaller ones. In November 2018, they attracted $500 million in new capital from the Canada Pension Plan Investment Board. The objective: more acquisitions in North America and Europe.

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