Latapack

Logo Latapack


Country:

Brazil

Sector:

General Industrials

Signing Date:

Oct 2008

Total Project Cost:

USD 135M

Lender of Record:

IFC

Cordiant Exposure:

USD 8.1M


Company Description

Latapack is a large Brazilian producer of aluminum cans and has two plants: one in Jacareí, São Paulo (about 100km east of the city of Sao Paulo), and the other in Simões Filho, close to Salvador, the capital of the state of Bahia. Founded in 1995, Latapack is a JV between the US-based Ball Corporation and a group of Brazilian investors.

The bulk of Latapack’s products are 350 ml and 355 ml aluminum cans. The plants are state-of-the art and similar to other Ball operated plants throughout the world.

Deal Logic

The current Brazilian supply of cans required to meet the growth in canned beverage demand is tight. The Latapack plants help to fill this fundamental void.

Investment Rationale

  • Good Consistent Growth: Latapack began producing cans in 1997 and is now one of the largest producers in Brazil.
  • Established and Competitive Player: Latapack has state-of-the-art facilities, a lean management structure and efficient manufacturing and logistics.
  • Growing Market: The aluminum can market has grown significantly in Brazil and is expected to continue growing moderately over the medium term.
  • Low Leverage: The company balance sheet has low leverage.
  • Good Security: The loan benefits from a strong security package.
  • Strong Environmental Controls: Latapack has a detailed ‘Environmental and Social Management System’ committing the Company to environmentally-conscious product development and manufacturing operations.