Coveris to sell Global Rigid business for €700m

2 May 2018 (Last Updated May 2nd, 2018 12:37)

Global packaging manufacturer Coveris Holdings has announced it is holding negotiations to sell its Global Rigid business for €700m in a bid to fully focus on the flexibles market.

Global packaging manufacturer Coveris Holdings has announced it is holding negotiations to sell its Global Rigid business for €700m in a bid to fully focus on the flexibles market.

The company is proposing the sale to funds advised by Lindsay Goldberg, a US-based private equity firm.

Last year, Global Rigid generated sales of around €560m, while Coveris’ remaining operations generated revenues of about €800m.

Following the completion of the transaction, the company will have manufacturing facilities in five countries, 25 strategically located facilities and more than 3,800 employees.

“This will strengthen our balance sheet and fully focus Coveris on the flexible packaging market where we are one of the largest players and have a strong platform for growth.”

Coveris CEO Jakob Mosser said: “Following the sale of our Americas business, this will further strengthen our balance sheet and fully focus Coveris on the flexible packaging market where we are one of the largest players and have a strong platform for growth.”

The company is focused on offering a wide range of packaging products for food, medical supplies and touchscreen devices.

Last month, the company agreed to sell its Americas packaging business to Canadian printing and flexible packaging firm Transcontinental for a total of €1.10bn in a bid to clear its existing debts.

Last week, Coveris received all relevant regulatory approvals needed for the closure of the transaction involving its Americas packaging business.