One Equity Partners’ Constantia Flexibles Unit Plans Share Sale
Constantia Flexibles Holding GmbH, the Austrian packaging maker owned by JPMorgan Chase & Co. (JPM)’s One Equity Partners LLC, may sell shares to the public after it reaches 2 billion euros ($2.6 billion) in revenue.
The company will reach this “critical size” by 2015 or earlier if it keeps acquiring competitors, Chief Executive Officer Thomas Unger told journalists in Vienna today. Constantia, which provides packaging for food, beverages and medicine, had sales of 1.31 billion euros in 2012 and added 350 million euros this year after buying companies in Mexico, the U.S. and India, according to a company presentation.
“Our owners are with us for a limited time and the logical exit for us is the stock exchange,” Unger said. “For that, we need profitability and growth.”
One Equity Partners bought a majority stake in Constantia Packaging, Constantia Flexibles’ former owner, in 2009 and subsequently split up the company. AMAG Austria Metall AG (AMAG), Constantia Packaging’s aluminum business, sold shares in April 2011 in the only initial public offering at Vienna’s stock exchange since Strabag SE (STR)’s offer in 2007.
It isn’t yet clear whether Constantia Flexibles’ share sale will also be in Vienna, Unger said. “This is the owner’s decision,” he said.
Constantia Flexibles’ products include lids for yogurt cups, labels for bottles and containers for medicine. It 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. (AMC), Bemis Co. (BMS) and Sealed Air Corp. (SEE)
Unger didn’t rule out the company selling new bonds. “We will be considerably more active on the capital market,” he said. Constantia sold a 150 million-euro bond aimed at retail investors in 2012 with a yield of 4.25 percent.
The Vienna-based company had earnings before interest, taxes, depreciation and amortization of 187.6 million euros in 2012, or 14.2 percent of sales.
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