Pachem

Background

Pachem – A medium-sized family business with a focus on growth
In 2000, Alpine Equity invested in the medium-sized packaging specialist Pachem in western Austria. Growth capital was made available for further expansion, which was invested, among other things, in the expansion of production capacities abroad. The majority of the company shares and the operational management remained in the company as desired. Within a short time, sales and the number of employees doubled. The exit took place in 2002 by means of a trade sale to an international group

Facts & Figures

Founded as a start-up in 1992

Strategic Goal: Strong, sustainable growth and a global presence

Situational analysis

Alpine Equity Investment during 2000

Pachem’s turnover was €17 million

The business employed 90 people

Financial situation: External equity, as well as low equity ratio for realization of growth

Financing

Mix of growth and mezzanine capital

Pachems need

The leadership team realized their low equity ratio was central to preventing the organisations global ambition.  Alpine Equity was appointed to provide liquidity for expansion plus additional mezzanine capital

Benefit to the company

Pachems leadership team had the liquidity to establish a production facility in the UK

Furthermore, the cash and advice allowed the development of new production methods and strengthening of the R&D function

As a result, Pachem delivered rapid growth in turnover as illustrated by €17 million in 2000 which by 2002 grew to €30 million.  Similarly, headcount grew from a baseline of 90 people in 2000 to a total of 150 people in 2002

Exit

Goals of the venture defined with Alpine Equity were reached by the Pachem team in 2002

A Trade Sale to a listed Canadian group with a turnover of 1 billion Euros, 7000 employees and 33 production sites worldwide was brought to a successful conclusion

The new strategic partner provided Pachem the experience and worldwide reach to further develop Pachems global expansion plans