OEP divests Constantia Flexibles for €2.3bn

Majority owner OEP, together with the H. Turnauer Foundation, sold their 100% stake in Constantia Flexibles to listed investment firm Wendel after a five-year ownership period.

The Wendel offer represents around nine times the company's estimated 2014 EBITDA. The new owner cited the opportunities available in the fragmented packaging market as a reason to invest.

The H. Turnauer Foundation is in discussions with the new owners about a potential reinvestment in the company. Wendel stated it would be pleased to enter into a cooperation agreement with the foundation.

Debt financing
Wendel will finance the transaction using a debt package worth around 5x EBITDA.

Previous funding
OEP acquired a 65% stake in Constantia Packaging in 2009 for €425m in equity. The company was delisted in the transaction, which valued it at €650m overall. OEP went on to hold a 75% stake in Constantia Flexibles, with the remainder belonging to the H. Turnauer Foundation. Sales grew by 73% and EBITDA grew by 76% during OEP's ownership.

Company
Founded in the 1960s by Herbert Turnauer, Vienna-headquartered Constantia supplies flexible packaging and labelling to both local and multinational companies in the food, pet food, pharmaceuticals and beverage industries. It has 3,000 customers worldwide and employs 8,000 people at 43 industrial sites in 18 countries. Its products are sold in 115 countries worldwide.

Constantia generated revenues of €1.63bn in 2013 and EBITDA of €233m. According to Wendel, the company has seen an average annual growth rate of 8.6% during the last 10 years. It has made five acquisitions since 2010, purchasing companies with combined sales of €503m.

People
Melchior von Peter is managing director at OEP. Thomas Unger is CEO of Constantia Flexibles. Frédéric Lemoine is chairman of Wendel's executive board.

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