Organic Growth Masterclass: Logoplaste, backed by The Carlyle Group
Expanding the client base, strengthening the management team and making strategic bolt-ons have helped packaging firm Logoplaste power ahead through organic growth, says Alex Wagenberg, managing director and partner at The Carlyle Group.
Logoplaste is a global designer and manufacturer of value-added rigid plastic packaging solutions to a wide range of blue-chip clients. The company offers unique expertise across all phases of packaging development, from ideation, design and engineering, to full industrial implementation. Logoplaste is a leader in the “through-the-wall” business model that supplies its customers with dedicated facilities either nearby or integrated with the customer premises.
Carlyle acquired a majority stake in Logoplaste in October 2016 through Carlyle Europe Partners IV (CEP IV).
CLIENT BASE EXPANSION
Alex Wagenberg, managing director and partner at The Carlyle Group, says: “Logoplaste has very strong relationships with its existing customers. Carlyle understood that these long-standing relationships, combined with Logoplaste’s strong industry reputation for high levels of customer service, positioned the business well to expand its client base and acquire new business contracts.”
Logoplaste had been successful in exporting its business model in North America, where there were sizeable growth opportunities. Carlyle recognised this and shared the view that North America represented a key market for growth opportunities, and supported Logoplaste’s focused commercial efforts in in this key market. Approximately 70 per cent of the new contracts awarded during Carlyle’s ownership period were in North America.”
“Given the breadth of Logoplaste facilities worldwide, Carlyle identified there was a need to centralise operations across the group. Carlyle identified the opportunity to set up a global and centralised operations team led by a group COO and an operations team with an overall global view of how the business was operating. This team was tasked with sharing best practices across the business. The operations team was established during Carlyle’s ownership and drove numerous company-wide initiatives that generated significant operational improvements during Carlyle’s ownership and are expected to generate further operational improvements over the coming years.”
Alex Wagenberg says: “During Carlyle’s investment period, we strengthened the management team led by Filipe de Botton and Alexandre Relvas, professionalising management team structures and adding external world class talent to the team, including the appointments of a new CEO, COO and CHRO. Furthermore, the company appointed highly experienced executive Gerardo Chiaia as its new CEO in April 2019. De Botton remained as chair of the group and Alexandre Relvas remained as a board member, retaining Logoplaste’s core entrepreneurial culture.”
Alex Wagenberg says: “Carlyle implemented a number of changes across the organisation – commercial, operational and related to the investment process. Carlyle supported Logoplaste’s first ever corporate acquisition when it bought Masterchem in 2019. Overall, Carlyle improved the company’s financial control function and implemented a more structured approach to investment decision-making. Carlyle significantly expanded the investment process at Logoplaste, strengthening the company’s pure investment analysis and M&A execution, as well as business and culture integration.”