Dubai International Capital, the private equity arm of Dubai Holding, completed the sale of the German packaging firm Mauser to Clayton Dubilier & Rice (CD&R) for $1.7 billion, the fund said in a statement.
The agreement for the sale was first announced on May 12, 2014 and is one of the largest asset disposals by state-owned Dubai Holding since the debt crisis in 2009.
Mauser, which was acquired by DIC in 2007 from JP Morgan’s buyout unit in a deal valued at $1.2 billion, was put up for sale earlier this year.
The Bank of Merrill Lynch advised DIC while Latham & Watkins provided the legal counsel, the statement said. Credit Suisse assisted CD&R in the deal, Reuters said quoting sources.
It was reported initially that the Mauser sale will be part of an auction involving two other DIC assets but the plan was scrapped and a sole auction for Mauser was pursued.
“This transaction demonstrated DIC ‘s ability to improve and grow the companies it has invested in to ultimately achieve an attractive value at the point of exit,” said David Smoot, chief executive officer of DIC
“We are now focused on continuing to enhance the value of our remaining portfolio as we prepare the companies for an eventual exit.”
Dubai Holding, the personal investment vehicle of the emirate’s ruler Sheikh Mohammed bin Rashid Al Maktoum, has been selling off assets to raise funds to repay debt payments worth $50 billion over the next three years.
Its Dubai Group unit reached a final deal with creditors in January to restructure its $10 billion debt.