MONTABAUR, GERMANY (July 21, 11:55 p.m. ET) --Strategic Value Partners LLC, a hedge fund  based in Greenwich, Conn., has assumed ownership of film major Klöckner Pentaplast Group.

Montabaur-based Klöckner announced the deal July 21. According to the company, investment banker Jefferies & Co. Inc. of New York  backed the buyout by SVP and a group of junior lenders.

The deal cuts Klöckner Pentaplast’s total debt in half, from 1.26 billion euros to 630 million euros (from $1.58 billion to $730 million).

The deal was expected -- earlier this week the financial press had reported on the players. A deal needed to be finalized this week to avoid a covenant-breach waiver that expires June 22.

SVP bought the company from Blackstone Group LP.

According to Klöckner, the new investors led by SVP injected 190 million euros ($238 million) in cash equity in the company. In addition, Jefferies & Co. underwrote and funded new debt in the company, repaying in full 800 million euros ($1 billion) of the first lien senior secured credit facilities at par plus accrued interest.

Klöckner  said  the new shareholders are fully supportive of the existing management team.

"We will remain focused on our key strengths and deliver the high-quality films and superior technical support for which we are known to all our customers. We are eager to work with our new shareholders to move Klöckner Pentaplast forward to drive our strategy and to achieve our goals,” CEO Christian Holtmann said in the release.

Klöckner Pentaplast makes films for pharmaceutical, medical device, food, electronics, and general-purpose thermoformed packaging, as well as printing and specialty applications. The company has sales of more than $1.4 billion, more than 3,000 employees, and 17 plants.