Carlyle engages Bain to review strategy of Logoplaste

Logoplaste – a Portugal-based rigid plastic packaging manufacturer – is looking to expand its presence in Europe and the Americas while also exploring new markets. Bain & Company has been brought on board to advise on expansion strategies.

The global management consultancy was commissioned by The Carlyle Group, a US-based private equity firm that acquired Logoplaste in 2016 for a sum of €660 million. The objective is to help Logoplaste’s CEO Gerardo Chiaia and his leadership team to plan out the next growth phase for the firm, building on a run of highly successful years.

Logoplaste has gone from strength to strength since joining Carlyle, particularly in North America where its presence has tripled over the last half a decade alone. Late last year, the firm consolidated its European presence through the acquisition of a majority stake in Polish plastic packaging company Masterchem. Add to this regular additions of production facilities in North America, Europe, and Brazil, and the growth story becomes apparent.

The strategy consultants have been tasked with helping the firm decide where to go from here, as Logoplaste looks to build on its current base of more than 2,000 employees across over 60 factories in six countries – cumulatively generating more than €500 million in turnover. The basic outline, as put forth in Logoplaste statement, is to “continue to increase its presence in Europe and the Americas as well as to support clients in their international development in Asia, Australia and New Zealand.”

The strategic review conducted by Bain & Company will consider “how best to support management’s ambitious strategy, including the potential for new acquisitions in the US and elsewhere,” according to the statement. Restructuring, acquisitions, and organic expansion are all on the cards, and speculation is running rife.

Part of this has stemmed from the additional appointments of Barclays Bank and Goldman Sachs as financial advisors, reportedly to hone in on prospective new investors to financially support the next expansion phase. Speculation suggests that Carlyle wants to offload its share in Logoplaste, in a sale that could value the company at over €1 billion.

A sale would be just one of many options ahead of Logoplaste and its advisors, and it remains to be seen what is decided. In any case, finding investors or partners for the firm should not be a challenge, given its strong relationship with customers and relevance in the contemporary market.

Alongside boasting integrated customer-centric production facilities, Logoplaste has emerged as a leader in the environmental, social and corporate governance (ESG) space. The firm reportedly saved 12,000 tonnes of carbon emissions last year alone, and is currently working on developing a zero-emission industrial plant. Logoplaste’s flagship environmental initiative is the Ecover Ocean bottle – the first bottle made by recycling plastic that had been taken from the ocean.

As ESG factors take centre stage, they will no doubt play a key role in the expansion plans going forth. Bain’s own expertise in this sphere will be of key importance as it helps chart the course for Logoplaste going forth.