Walsroder Casings was a globally operating manufacturer of quality-leading artificial casings. The company specialised in cellulose-fibrous casings as well as premium plastic casings and differentiated itself through outstanding capabilities in service and consulting. In addition to its headquarters in Bomlitz, Walsroder Casings operated production and conversion sites in Legnica (Poland) and Willowbrook (USA).

The acquisition

Walsroder Casings was acquired in 2011 together with management by Equita Holding (Fund III). The previous owner, Adcuram, was looking for an active co-shareholder, having positioned Walsroder Casings as a stand-alone entity following a carve-out. Hauck & Aufhäuser ran a competitive auction process; the team’s ability for a speedy execution of a very complex transaction was instrumental in securing the transaction.

Investment Rationale

The market segment was resilient to economic cycles and characterised by high barriers to entry, given that the production of cellulose-fibrous casings is a complex and capital-intensive process. Walsroder Casings had a strong brand and held leading market positions in Germany, Russia and selected South and North African markets. Geographical growth potential was identified in particular in the US midmarket and in Eastern Europe.

Implementation of the growth concept

During the holding period, brand and service competence were systematically expanded and the international sales network was further developed. Production capacities in Poland and the US were enhanced with investments in a new extrusion line and an in-house printing unit. In 2013, an experienced sales manager was seconded from Germany to the US in order to further strengthen alignment between the international locations and the headquarters. In parallel, R&D capabilities were expanded in order to develop new products.

Exit

The exit was completed in January 2017 to Viskase Companies, Inc., a globally leading manufacturer of sausage casings and packaging solutions for the meat processing industry, headquartered in Lombard, Illinois (USA).