Bosch Packaging suitors whittled down after EUR 600m cut-off round

09 May 2019 - 09:51 am UTC

by Joao Grando, Maryna Irkliyenko, Min Ho and Fei’er Wang, with analytics by Mate Taczman and Olivier Gilkinet

Bosch Packaging Technology has admitted Italian engineering group Coesia, German holdings Haniel and Körber, and funds Bain and KKR to second round bids following a EUR 600m cut-off for indicative offers, according to sources familiar with the matter.

 

CVC did not proceed, but hopes to be accepted back into the process to make another attempt, one of the sources said. The PE firm may consider teaming up with Coesia to bid for the asset, a second source added.

 

Bidders are conducting due diligence in the Robert Bosch-owned company, a further source familiar with the situation said. Final bids are expected in mid-June, with the signing predicted for the weeks after that, before the summer break, this source added.

 

Bosch Packaging Technology collected indicative offers mid-May as part of a carve-out process that attracted the interest of close to 15 suitors, as reported by this news service. It appointed Macquarie in late July to explore the sale of the EUR 1.2bn-turnover unit, which it no longer considers a core activity.

 

Bidders analysis

Coesia, which has been keenly interested in Bosch Packaging Technology, as previously reported, has grown through several bolt-on acquisitions in the packaging machinery space over the last few years (see table below for bidders’ experience in the machinery space.)

 

The Italian company generated EUR 1.58bn revenues and EUR 242m EBIT in 2017, with EUR 336m cash and equivalents at the end of that year.

 

Diversified investor Haniel has experience in the sector, having acquired Rovema, a EUR 110m-turnover packaging machinery and equipment maker headquartered in Germany, in 2017. At the holding level, Haniel has around EUR 1.4bn available to expand its portfolio of business, according to 2018 annual report.

 

Körber invested in Medipak in 2002, later undertaking bolt-ons at the pharma industry packaging specialist. Körber posted EUR 2.6bn sales in 2017 and had EUR 315m of cash on hand at the end of that year.

 

KKR’s experience in machines and automation includes the acquisitions of flow control technology company Gardner Denver, while Bain listed sensors and controls company Sensata Technologies in 2010.

 

Bain, CVC, Haniel, Körber, KKR and Macquarie declined to comment. Bosch Packaging Technology and Coesia did not reply to requests for comment.