Gerresheimer explores potential sale of packaging business

GERMANY – Gerresheimer, a leading German manufacturer of pharmaceutical and cosmetic packaging, is reportedly evaluating a potential sale. 

According to Bloomberg, sources familiar with the matter revealed that the company has engaged advisors to gauge interest from potential buyers.

Several private equity firms, including Warburg Pincus, EQT, and KKR & Co, have expressed preliminary interest.

Gerresheimer is considered an attractive acquisition target due to its diversified operations spanning two distinct business segments.

However, concerns over the company’s valuation have caused some private equity funds to hold back from making an offer.

Additionally, the company has been exploring strategic alternatives for its moulded glass division since last year.

In December, Gerresheimer announced a major investment in expanding its Skopje, North Macedonia facility.

The €100 million (US$105m) project includes a new syringe production facility, adding approximately 7,600m² of production space.

The expansion will double the workforce from 250 to 500 employees over the next three to five years.

The first syringe production lines are set to begin operations by the end of this year, with additional lines to follow.

International Paper completes DS Smith acquisition 

Meanwhile, International Paper has finalized its acquisition of British multinational packaging firm DS Smith.

Under the agreement, International Paper will issue approximately 179.8 million new shares of common stock, offering 0.1285 new shares for each ordinary DS Smith share.

The newly issued shares will commence trading on the New York Stock Exchange under the ticker ‘IP’ on February 4 and will also be listed on the London Stock Exchange under the symbol ‘IPC’.

The merger, valued at £5.8 billion (US$7.12 billion), aims to establish International Paper as a global leader in sustainable packaging, with a strong presence in North America and Europe.

BofA Securities served as International Paper’s exclusive financial advisor, while Skadden, Arps, Slate, Meagher & Flom provided legal counsel.

Sidley Austin acted as the US antitrust legal advisor. DS Smith was advised by Goldman Sachs International, Citigroup Global Markets, and J.P. Morgan Securities, with legal counsel from Slaughter and May and Sullivan & Cromwell.

Andrew Silvernail, Chair and CEO of International Paper, emphasized the significance of the merger, stating, “The combination of International Paper and DS Smith will create the world’s leading sustainable packaging company.

“With a differentiated geographic footprint and an unparalleled suite of sustainable products, we will accelerate growth, improve profitability, and better serve our customers.”

The deal, initially proposed in March, received European Union approval last month.

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