- South American packaging group attracting sponsor interest
- Company sold stake in Alusa subsidiary to Amcor this month
Tech Pack SA, one of the largest packaging groups in South America, is considering strategic options including a sale of the entire company, said people familiar with the matter.
The company, whose controlling shareholder is conglomerate Quinenco SA, is working with Citigroup Inc. on the process, said the people, who asked not to be identified because the information is private.
An outright sale could value the company at about $500 million, including debt, two people said. Talks are at an early stage and there is no guarantee of a deal taking place, one of the people said.
The company sold its stake in one its brands, Alusa, to Australian packaging group Amcor Ltd., this month in a $435 million deal. Should the sale be approved at a shareholder meeting in May the remaining cash and assets would be retained, a spokeswoman for Quinenco said.
Tech Pack, which is listed in Chile, is attracting interest from larger buyout firms whose preference would be to take the company private, said the people.
Packaging has proved a popular sector for private equity firms in recent years. Canada’s Onex Corp. bought Swiss packaging company SIG Combibloc AG in 2014 in a deal valued at 3.75 billion euros ($4.23 billion). Also in 2014, private equity firm Warburg Pincus sold off the packaging business of London-based Clondalkin Group Plc to Essentra Plc for about $455 million.
Tech Pack, based in Santiago, makes flexible packaging products for hygiene and food companies. It has five production plants in Chile, Peru, Argentina and Colombia with a production capacity of close to 80,000 tons per year, according to the company’s website.
A spokesman for Citigroup declined to comment, while representatives for Tech Pack didn’t respond to e-mail requests seeking comment.