Austria-based Constantia Flexibles has 30 sites in 16 countries to manufacture and provide tailor-made flexible packaging solutions for pharmaceutical, food and consumer goods customers
One Rock Capital buys Constantia Flexibles. (Credit: Tumisu from Pixabay)
US-based private equity company One Rock Capital Partners’ affiliate has agreed to acquire global packaging manufacturer Constantia Flexibles from Wendel, a French investment firm.
Austria-based Constantia Flexibles provides flexible packaging to around 4,000 pharmaceutical, food and consumer goods customers.
The packaging firm has more than 7,650 workers to manufacture and provides tailor-made packaging solutions across the world from 30 sites in 16 countries.
Constantia Flexibles CEO Pim Vervaat said: “Our current position and success would not have been possible without Wendel’s dedication and commitment.
“We are grateful for their supportive partnership over the years, which has enabled our growth and investments in our workforce, innovations, and sustainable offerings for the Consumer and Pharma markets. Working alongside Wendel has been a pleasure.”
Upon completion of the deal, Wendel would receive about €1,097m in net proceeds from the sale of the company, which is equal to a multiple of 1.94 times its total investment in Constantia Flexibles since 2015.
The transaction’s net proceeds, or as of 31 March 2023, are €84m more than Constantia Flexibles’ valuation in Wendel’s net asset value announced prior to the transaction announcement.
Additionally, additional profits from the company’s continuing asset sales may raise the total to €1,124m.
Wendel Group deputy CEO David Darmon said: “The history of Constantia Flexibles within Wendel’s portfolio highlights the validity of our long-term investor model, which has enabled us to support the Company in its development.
“Constantia Flexibles has thus placed innovation at the heart of its growth model, enabling it to rise to the challenge of the circular economy without compromising on the functional requirements of its products.
The transaction is expected to close during the second half of 2023 subject to the fulfilment of the contractual prerequisites, which include receiving regulatory bodies’ approval.
In 2015, Wendel acquired Constantia Flexibles for an enterprise value of €2.3bn and indicated €640m in equity for a 73% stake in the company, and syndicated a minority share of Maxburg Capital Partners’ investment.
Last month, Constantia Flexibles and SB Packagings formed a new joint venture, SB-Constantia Flexibles, for Indian and South Asian markets.=