AUSTRIA – French investment group, Wendel SE is considering a potential sale of Constantia Flexibles, an Austrian packaging firm.
The deal could value the firm at about €2 billion ($2.1 billion), according to people familiar with the matter, reports Bloomberg.
Wendel is in the initial stages of working with advisers to identify potential buyers for the business, the people said, asking not to be identified as the matter is private.
The investment firm is said to be ‘not in a hurry’ to begin the sale, instead waiting for financial markets to improve.
A formal bidding process may launch in the second quarter of next year or later, according to sources.
Vienna-based Constantia Flexibles produces flexible packaging for the consumer and pharmaceutical industries. The company employs more than 8,500 people, according to its website.
The investment group confirms that deliberations are ongoing, but there’s no certainty they will lead to a transaction.
Due to concerns over economic recessions and surging inflation, private equity deals have fallen this year as firms try to secure cheap credit to fund buyouts.
Despite this, demand for packaging assets has remained strong, with Bain Capital recently selling a stake in the Italy-based Fedrigoni to BC Partners for around US$3.1 billion.
In August, Constantia Flexibles signed an agreement to acquire a 100 % stake in UK-based FFP Packaging Solutions.
The acquisition earns Constantia Flexibles the first consumer plant in the UK and is an excellent addition to its portfolio.
FFP Packaging Solutions has over 50 years of experience, driving the revolution of sustainable, flexible packaging.
The acquisition is in line with Constantia Vision 2025 growth strategy of investing in competitive businesses with potential for future growth.
Commenting on the deal, Pim Vervaat, CEO of Constantia Flexibles said: “FFP Packaging Solutions joining the Constantia Flexibles Group will expand our overall market position.
“Its significant experience and credibility allow for strong relationships across the UK food industry. We will be working with the existing management team to continue driving the revolution of sustainable flexible packaging in the UK and beyond.”
Based in Vienna Constantia Flexibles produces flexible packaging for the consumer and pharmaceutical industries. The company employs more than 8,500 people, according to its website.
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