Deals News | Acquisition of ILLIG Group

Orlando Capital V successfully completes acquisition of ILLIG Group

ILLIG is a leading global manufacturer of innovative thermoforming and packaging machines, particularly for the food industry.
The company generated annual sales of over €110 million in the last financial year 2023.
Complex transaction from insolvency proceedings by Orlando Capital V secures continuation of business operations and strategic transformation of the company.

Munich / Heilbronn, August 1, 2024 - Following the successful signing of the purchase agreement at the beginning of July, Orlando Capital V has completed the takeover of the business operations of ILLIG Maschinenbau GmbH & Co. KG, a leading global manufacturer of innovative and sustainable thermoforming and packaging machines. The transaction marks the third platform acquisition for Orlando Capital V in 2024.

lLLIG, founded in 1946, is globally renowned for its state-of-the-art thermoforming and packaging machines and has extensive technological expertise with more than 200 active patents. The company has its headquarters and main production site in Heilbronn, Germany, and a further production facility in Sibiu, Romania. Illig also maintains additional sales and service locations in Europe, the USA and Asia, and serves a diverse global customer base, primarily in the food industry. ILLIG offers a wide range of modular machine solutions for the production of sustainable and recyclable plastic and cardboard packaging. The focus here is on packaging development: ILLIG works with customers to design resource-efficient and sustainable solutions and supports packaging manufacturers in design and production. With its new developments, ILLIG is a technological leader in current industry trends such as hybrid packaging, bioplastics, recyclable plastics and cardboard/fiber solutions. In September 2024, ILLIG will present a new product for sustainable packaging made from dry natural fibers (dry fiber) at the Fachpack trade fair in Nuremberg, once again demonstrating its technological leadership and innovative strength.

In April 2024, ILLIG had to file for insolvency due to several exogenous factors - including the after-effects of the coronavirus pandemic, high-cost inflation and a general reluctance to invest on the part of customers due to the inflation-induced decline in consumer behavior in the food sector. The acquisition that has now been completed, the injection of significant financial resources by Orlando Capital V and a significant reduction and flexibilization of the cost base will enable the company to strategically realign itself and concentrate on its strengths in technology leadership and customer focus. There will also be an increased focus on expanding international sales and on the service and spare parts business.

Georg Madersbacher, Partner at Orlando Capital, comments: "ILLIG's outstanding technological expertise and commitment to sustainability in packaging technology represent a promising investment opportunity. We are convinced that with the right measures, the company will continue to drive innovation in the packaging industry and achieve long-term success."

About Orlando Capital

Orlando Capital V is an investment company based in Munich that is primarily active in German-speaking countries and the Nordic countries. We manage the private equity fund Orlando Capital V with a fund volume of €255 M. Our investments focus on majority stakes in well-positioned medium-sized companies, particularly in succession situations, complex carve-outs and special situations. With over 20 years of experience, the Orlando team has successfully advised on more than 65 transactions, emphasizing trusting relationships and entrepreneurial partnerships with owners and sellers.