Constantia Flexibles is a manufacturer of flexible packaging products and labels. OEP acquired the company in 2009, when it took over the majority of Constantia Packaging AG, and holds 75 percent of Constantia Flexibles, with the remaining 25 percent owned by the H. Turnauer Foundation.
Constantia Flexibles supplies its products to numerous multinational companies and local market leaders in the food, pet food, pharmaceutical and beverage industries. Constantia Flexibles employs over 8,000 people in almost 80 group companies and delivers to over 3,000 customers worldwide. In 2013, the company achieved sales of 1.63 billion EUR and earnings of 233 million EUR. Since OEP’s investment, sales have grown by 73 percent and earnings by 76 percent.
Thomas Unger, Constantia Flexibles chief executive officer, said: ‘In recent years Constantia Flexibles has developed from a regionally-focused provider in Europe into a globally-active group present in the most attractive and fastest growing markets for flexible packaging. We have positioned the company outstandingly for further profitable growth, and we will be working with our new owner to realize this potential in the future.’
Nicholas Mockett, head of packaging mergers and acquisitions at Moorgate Capital, said: ‘Constantia, which acquired Spear Group in 2013 is one of the world’s largest printers of flexible packaging and labels. The acquisition of Constantia by Wendel is the most significant deal in the flexible packaging industry since Amcor’s acquisition of the Alcan assets in 2009.
‘The strong interest in the business demonstrates the attractive markets it operates in which are growing and also defensive.
‘Flexible packaging, film and labels are growth markets globally and Constantia serves attractive segments such as food and beverage, which are benefitting from the ageing population, increasing population, and burgeoning middle class.’
The transaction is subject to approval from the relevant antitrust authorities and is expected to be closed in the first half of 2015.
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