Ontario Teachers’ Pension Plan

Board is exploring a sale of Portuguese packaging maker Logoplaste, which could be valued at more than €1.7 billion (US$2 billion) in a deal, according to people with knowledge of the matter.

The Canadian pension fund holds a 60 per cent stake in Logoplaste and has selected banks to advise on a potential sale of the whole company, the people said, asking not to be identified discussing private information. A transaction could be completed as soon as 2026, they added.

Deliberations are ongoing and there’s no guarantee they would lead to a transaction, the people said.

Minority shareholders Filipe de Botton — the company’s chairman and founder — and board member Alexandre Relvas may exercise their option to reinvest alongside any new buyer to keep their combined holding of about 40 per cent, the people said. The pair followed that approach when Carlyle Group bought a majority stake in 2016 and again when OTPP invested in 2021.

Founded in 1976, Logoplaste’s success stems from its “wall-to-wall” model, which places small manufacturing plants inside client factories to streamline production, cut costs and improve delivery. The Portuguese packaging maker now operates more than 60 plants in 17 countries, supplying plastic containers to major customers including Kraft Heinz Co., Diageo Plc and L’Oréal SA.

While the company doesn’t disclose financial results, it generates roughly €1 billion in annual revenue, according to people familiar with the matter.

Logoplaste was valued at about €1.4 billion including debt when OTPP bought the majority stake from Carlyle in 2021. At the time, Logoplaste said that OTPP would support its strategy of investment in product innovation and sustainability, as well as helping the company expand geographically and across product offerings.

Carlyle had invested about €660 million in Logoplaste in 2016.

Representatives for Logoplaste didn’t immediately respond to an email seeking comment on the deal. A spokesperson for OTPP declined to comment.

Bloomberg.com