CVC eyeing AR Packaging sale - report

According to a report by Bloomberg, the GP has engaged an adviser to solicit interest in AR and has collected non-binding bids.

A source close to the situation confirmed that the contemplated value would be €1.3bn and above.

This is not the first time the GP has appointed advisers to look into an exit process for AR. In 2018, CVC reportedly mandated a Swedish and an international bank to advise on a dual track process for the company. At that time, Dagens Industri reported that the deal could value the company at €579-675m.

In 2019, it was reported that the GP was preparing to list the company at a valuaton of €700-800m, and that it may opt for a refinancing if the company did not attract strong enough interest from investors.

Dagens Industri later reported that CVC was minded to wait before listing AR, in order to give the company's profits a chance to increase and two acquisitions time to show up in the books.

CVC acquired AR in 2016 from Accent Equity Partners and Swedish investment group Ahlstrom Capital. It has since pursued an active buy-and-build strategy for the company, having added on companies in Nigeria, Indonesia, Croatia, DACH and the UK.

Founded in 2011 and headquartered in Lund, AR manufactures packaging for industries ranging from food and cosmetics to pharmaceuticals and tobacco. The company has around 5,500 employees, and net sales of around €900m.

CVC declined to comment when approached by Unquote.

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