Bosch agrees Packaging Technology sale to CVC Capital Partners
15 Jul 2019 --- Bosch Packaging Technology is to be sold to private equity and investment advisory firm CVC Capital Partners (CVC) for an undisclosed fee, subject to approval by antitrust and other authorities. Packaging Technology and its Pharma and Food units are to remain intact and all 6,100 associates in 15 countries will remain with the business. CVC was chosen for its “growth strategy for Bosch Packaging Technology and for its broad industrial expertise.”
Bosch’s packaging machinery business, based in Waiblingen, will become a newly incorporated entity managed by CVC. Based in Luxemburg, CVC is a leading private equity and investment advisory firm with 24 offices in Europe, Asia, and the US. It currently manages more than US$75 billion of assets.
The parties signed an agreement on July 11, 2019, effecting the transfer of the entire packaging technology business and its 6,100 associates in 15 countries. It has been agreed that the purchase price and other details of the purchase agreement will not be disclosed. Completion of the sale is subject to the approval of various bodies, including antitrust authorities, and is expected to close at the turn of the year.
“Bosch decided in favor of a purchaser that presented a credible strategy and a viable concept. The buyer was selected very conscientiously – for our company, the overriding priority was to find a purchaser that would offer new and promising opportunities and be willing to invest in Packaging Technology over the long term,” Katharina Hogh-Binder, Spokesperson IoT and Connectivity, Bosch Group, tells PackagingInsights.
“As part of the carve-out process, we are working on positioning Packaging Technology as an independent company with a new identity and brand/name. Details related to this will be communicated later during 2019,” Hogh-Binder adds.
Bosch announced a year ago that it was looking for a buyer for its packaging technology business. The company says that is giving increasing attention to mobility and connectivity over the internet of things. It is focusing its existing resources on areas of future importance, such as shaping the transformation process and preparing for further digitalization. Bosch believes that the Packaging Technology division’s competitiveness, and thus also its future viability, can be further enhanced through this new partnership and that significant stimuli for growth can be created.
“My colleagues and I in executive management regard this new partnership with CVC as a huge opportunity for our future success,” comments Dr. Stefan König, the President of Robert Bosch Packaging Technology. “Just under two years ago, we completely modified our strategy. It now includes working on a completely new range of smart and sustainable process and packaging technologies. This will allow us to offer our customers even more attractive product solutions and services in the future. Our customers and our associates will benefit from the progress we have made.”
“With its experience in growing companies over the long term, its broad industrial expertise, and its viable strategy for taking the division forward, CVC was the right choice for us,” adds Dr. Stefan Hartung, Chairman of the Supervisory Board, Robert Bosch Packaging Technology. “The growth concept it has presented, as well as the investments it plans to make, are very promising. For Packaging Technology and all its associates, our aim was to find a reliable new owner with a long-term approach, under whose leadership the business can develop successfully. We have achieved just that.”
From the perspective of CVC, Bosch Packaging Technology is a strong company in an attractive market with long-term growth prospects, explains Dr. Alexander Dibelius, Managing Partner of CVC.
“Bosch Packaging Technology has an excellent reputation for quality and innovation, a broad product range, a global footprint, and experienced associates. Together with the management team, we will work to take the business forward in the years ahead, and to make it even more competitive,” Dibelius says.
Bosch Packaging Technology is demonstrating its single source bag-in-box system expertise, which covers the entire line from bagmaker and settler to product handling, end load cartoner and case packer. The company will be exhibiting two machines, the Kliklok Interceptor and Kliklok MEC, at the upcoming PACK EXPO 2019 in Las Vegas, US. The lines aim to respond to customers who are leaning toward automated lines as a solution for the limited number of employees to fill manual jobs, a Bosch spokesperson tells PackagingInsights.
By Joshua Poole
