Wendel to sell Constantia Flexibles to One Rock Capital Partners
04 Aug 2023 --- One Rock Capital Partners is acquiring Constantia Flexibles from Wendel. The world’s third-largest producer of flexible packaging is being sold for a price that will yield net proceeds for Wendel of circa €1,097 million (US$1,200 million).
The net transaction proceeds are €84 million (US$91.9 million) above Constantia Flexibles’ valuation in Wendel’s net asset value as of March 31, 2023. Furthermore, additional earnings generated by Constantia’s ongoing asset disposals could bring the proceeds up to €1,124 million (US$1,229 million).
The transaction’s closing should occur during the second half of 2023. “In recent years under Wendel’s ownership, Constantia Flexibles transformed its business performance, developed an innovative pipeline of more sustainable products and completed multiple acquisitions,” says Pim Vervaat, CEO at Constantia.
“With diverse geographic and end market presence, the company is well-positioned to continue expanding its suite of packaging solutions amidst regulatory developments and a changing climate and we look forward to partnering with One Rock during this next chapter.”
A company spokesperson tells us that environmental sustainability will remain a focus area of growth under the new ownership. “Constantia has grown through acquisition and innovation to be a leader serving its food and pharma customers,” remarks Telmo Valido, partner at One Rock.
“We look forward to partnering with Constantia’s management team to continue innovating to solve the evolving packaging needs and sustainability requirements of the company’s customers.”
“With diverse geographic and end market presence, the company is well-positioned to continue expanding its suite of packaging solutions, says Pim Vervaat, CEO at Constantia Flexibles.Jumping ships after eight years
Under its ownership, Wendel supported Constantia Flexibles in its external growth strategy, with 11 acquisitions in 10 countries. In 2017, Constantia Flexibles sold its Labels business to Multi-Color Corporation, giving the company additional resources to bolster its growth strategy in the flexible packaging market, where it is a leader in segments such as confectionery foils, die-cut lidding, alu-container systems and pharma foil.
David Darmon, Wendel Group’s deputy CEO, says: “The history of Constantia Flexibles within Wendel’s portfolio highlights the validity of our long-term investor model, which has enabled us to support [Constantia] in its development.”
“Constantia Flexibles has thus placed innovation at the heart of its growth model, enabling it to rise to the challenge of the circular economy without compromising on the functional requirements of its products.”
Europe’s leading investment firm Wendel finalized the acquisition of Constantia Flexibles in 2015 for a 73% stake in the company, alongside the AREPO Foundation’s 27% investment. Currently, Constantia provides flexible packaging to more than 4,000 pharmaceutical, food and consumer goods customers globally.
“Under Pim Vervaat’s leadership, all Constantia Flexibles teams demonstrated their commitment and resilience during the COVID-19 crisis and coped brilliantly with the recent disruptions in the energy and commodities markets. They enabled the company to deliver outstanding operational, financial and extra-financial performance,” concludes Darmon.
By Radhika Sikaria
