Packaging manufacturer Coveris is in exclusive negotiations with Lindsay Goldberg to divest its global rigid business for around €700m.
The global rigid business reported sales of around €560m for the year ended on 31 December 2017.
Coveris’ global rigid division supplies rigid packaging solutions for the customers in the consumer goods and food service sector.
The product portfolio includes thermoformed pots and containers, thermoformed trays, lids, rigid sheets, caps, blow moulded packaging and injection molded packs.
Coveris produces rigid films that can run conveniently on all existing standard equipment, and material options include polystyrene (PS) and polypropylene (PP) for fresh dairy products, as well as polyethylene terephthalate (PET) with a sealable polyethylene (PE) layer for sliced cheeses and single portion spreads.
After the completion of proposed sale, which is subject to customary regulatory approvals, Coveris intends to completely focus on its flexibles market.
The company will have manufacturing facilities in five countries, 25 strategically located facilities and more than 3,800 employees, after completion of the deal.
Coveris’ remaining operations posted sales of around €800m for the year ended on 31 December 2017.
Coveris CEO Jakob Mosser said: “We are pleased to announce the proposed sale of our Global Rigid business to Lindsay Goldberg.
“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.”
In April this year, Coveris agreed to divest its Americas packaging business to Transcontinental in a deal worth $1.320bn.
Recently, Coveris has secured all regulatory approvals needed to complete the divestment of its Americas packaging business to Transcontinental.
Coveris intends to use the proceeds from the sale to repay certain of its existing indebtedness.