KKR To Invest In Charter Next Generation

Global investment firm KKR & Co (KKR) has agreed to invest in specialty films producer Charter Next Generation (CNG). Leonard Green & Partners, L.P. will be an equal co-owner with KKR while a subsidiary of the Abu Dhabi Investment Authority (ADIA) will acquire a minority stake in the company.

CNG’s products are used in flexible packaging, industrial, healthcare, and consumer industries. The company’s products help keep food fresh for a longer duration and also maintain the lowest carbon footprint among major packaging substrates.

Furthermore, CNG’s specialty films enable recycling and composting. In addition to protecting food, they are used in healthcare and industrial applications as well.

KKR Partner and leader of its Industrials investment team, Josh Weisenbeck said, “Charter Next Generation offers the gold standard when it comes to materials science, product quality, innovation, and technical expertise in specialty films.” (See KKR & Co stock analysis on TipRanks)

Weisenbeck added, “We are looking forward to investing in the company’s growth as they continue to raise the bar in innovation and sustainability.”

KKR’s Industrials team focuses on employee engagement, giving all its employees the opportunity to participate in equity return of its business. Kathy Bolhous, CEO of CNG, commented, “Continuous investment in our film technologies and in our team is mission critical for us, which is why we are excited to partner with these exceptional, forward-thinking firms – particularly for their steadfast approach to employee engagement and ownership.”

On May 5, Credit Suisse analyst Craig Siegenthaler reiterated a Hold rating on the stock and increased the price target to $66 (12.40% upside potential) from $60. Siegenthaler noted the company’s recent “Strong” Q1 numbers which included “better-than-expected” fee related earnings.

Consensus on the Street is that KKR is a Strong Buy based on 10 Buys and 3 Holds. The average analyst price target of $63.17 implies 7.6% upside potential. Shares have gained about 118.4% over the past year.

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