German engineering and technology firm Bosch has agreed to divest its packaging machinery business to a newly established entity managed by CVC Capital Partners (CVC).
Under the terms of the deal, Bosch will transfer the packaging technology business and its 6,100 associates in 15 countries to CVC. Financial terms of the deal were undisclosed.
Robert Bosch Packaging Technology supervisory board chairman and Robert Bosch management board member Dr Stefan Hartung said: “For Packaging Technology and all its associates, our aim was to find a reliable new owner with a long-term approach, under whose leadership the business can develop successfully. We have achieved just that.”
The sale is a part of Bosch’s effort to increase focus on mobility and connectivity over the internet of things.
Bosch said that the Packaging Technology and its pharma and food units will remain intact.
The firm is seeking to increase attention on its existing resources on areas of future importance, including shaping the transformation process and preparing for further digitalisation.
CVC managing partner Dr Alexander Dibelius said: “Bosch Packaging Technology is a strong company in an attractive market with long-term growth prospects. Packaging Technology has an excellent reputation for quality and innovation, a broad product range, a global footprint, and experienced associates.
“Together with the management team, we will work to take the business forward in the years ahead, and to make it even more competitive.”
Bosch said that the competitiveness and future viability of its Packaging Technology division could be enhanced further through the new partnership.
The transaction is subject to the approval of various bodies, including antitrust authorities.
Robert Bosch Packaging Technology president Dr Stefan König said: “Just under two years ago, we completely modified our strategy. It now includes working on a completely new range of smart and sustainable process and packaging technologies.
“This will allow us to offer our customers even more attractive product solutions and services in the future. Our customers and our associates will benefit from the progress we have made.”
CVC is a private equity and investment advisory firm. It manages more than $75bn (£60bn) worth of assets from its 24 offices in Europe, Asia, and the US.