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Constantia Flexibles Said to Pick Banks for IPO This Year

Aug. 1 (Bloomberg) -- Constantia Flexibles Group GmbH, the Austrian packaging maker owned by One Equity Partners LLC, picked JPMorgan Chase & Co., Goldman Sachs Group Inc. and Deutsche Bank AG to manage an initial public offering this year, said three people with knowledge of the transaction.

The transaction may value Vienna-based Constantia Flexibles, which makes packaging for food, beverages and medicine, at as much as 2 billion euros ($2.65 billion) and take place as soon as October, said one of the people, who asked not to be identified because the process isn’t public. The size and the timing of the deal aren’t decided yet, the people said.

Constantia Flexibles spokesman Wolfgang Schwaiger declined to comment on bank mandates. Officials for One Equity, which is owned by JPMorgan, as well as representatives at Goldman Sachs and Deutsche Bank also declined to comment. The Wall Street Journal reported the banks handling the IPO yesterday.

Chief Executive Officer Thomas Unger said in April that One Equity may sell shares to the public after Constantia Flexibles reaches 2 billion euros in revenue, a “critical size” he expects to achieve by 2015, or sooner, if it continues to acquire competitors.

The company, whose labels stick on Heineken beer and Pepsi Cola bottles, had sales of 1.31 billion euros last year. It has since acquired companies in Mexico, the U.S. and India that have combined revenue of about 350 million euros, according to a company presentation.

Competitor’s Valuation

Constantia Flexibles, which sold a 150 million-euro hybrid bond this year, makes two-thirds of its revenue in western Europe and plans to expand in emerging markets such as India and China. Its main competitors are Amcor Ltd., Bemis Co. and Sealed Air Corp.

The company’s earnings before interest, tax, depreciation and amortization, or Ebitda, rose 11 percent to 188 million euros last year. An enterprise valuation of 2 billion euros would be equivalent to 11 times last year’s Ebitda, compared to 12 times for Amcor and 9.7 times for Bemis, according to data compiled by Bloomberg. Constantia hasn’t provided an outlook for this year’s Ebitda.

Shares of Amcor, the world’s largest packaging company, touched its highest level since listing in 1968 today after it said it will spin off its Australian canning, bottling and carton business into a separate listed company.

One Equity Partners bought a majority stake in Constantia Packaging, Constantia Flexibles’ former owner, in 2009 and later split up the company. AMAG Austria Metall AG, Constantia Packaging’s aluminum business, sold shares in April 2011, the Vienna stock exchange’s only IPO since Strabag SE’s offering in 2007.

It’s not clear whether Constantia Flexibles would also have its primary listing in Vienna, Unger said in April.

To contact the reporters on this story: Boris Groendahl in Vienna at bgroendahl@bloomberg.net; Alexander Weber in Vienna at aweber45@bloomberg.net

To contact the editors responsible for this story: Frank Connelly at fconnelly@bloomberg.net; Mariajose Vera at mvera1@bloomberg.net

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