Constantia Flexibles Group to Go Ahead With Share Sale This Year
Constantia Flexibles Group GmbH, the Austrian packaging maker majority-owned by One Equity Partners LLC, said it will proceed with an initial public offering before the end of this year.
Constantia Flexibles, which makes labels and packaging for food, beverages and medicine, will sell new shares as part of the offering to increase its capital, the company said in a statement late yesterday. One Equity, which owns about 75 percent of the Vienna-based company, will sell some of its shares. JPMorgan Chase & Co. (JPM), Goldman Sachs Group Inc. and Deutsche Bank AG (DBK) are managing the IPO.
The preferred exchange for the deal, which may raise about 500 million euros ($682 million), is Frankfurt, and stock would also trade in Vienna, a person with knowledge of the matter said earlier this month. One Equity may sell 30 percent to 50 percent of the company in the transaction, Die Presse reported this month, without saying where it got the information.
The public offering is “a logical step in the implementation of our global expansion strategy,” Chief Executive Officer Thomas Unger said in a statement. “We plan to continue strengthening our presence in growth markets and playing an active role in the industry’s international consolidation process.”
Earnings, Sales Grow
Including this year’s acquisitions, Constantia Flexibles’ adjusted earnings before interest, taxes, depreciation and amortization climbed 22.2 percent to 175.3 million euros in the first three quarters of 2013, the company said. Sales grew 24.4 percent to 1.23 billion euros.
“We are convinced of Constantia Flexibles’ success and look forward to remaining on board as a long-term investment partner,” said Wolfgang Pfarl, board member of the Turnauer Family Trust, which owns about 25 percent of the company.
Constantia Flexibles, which sold a 150 million-euro hybrid bond in May, bought competitors in India, Mexico and U.S. this year for expansion outside of Europe. Its main rivals are Amcor Ltd. (AMC), Bemis Co. (BMS) and Sealed Air Corp. (SEE)
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