Coveris Holdings S.A., a premier global packaging manufacturer, today announced that it has entered into an agreement with Transcontinental Inc. to sell the Company’s Americas packaging business for an aggregate purchase price of $1.320 billion, which shall be paid in cash and shall be subject to customary closing adjustments.

The proceeds of the Americas Sale are expected to be used to repay certain of the Company’s existing indebtedness. Coveris Americas generated sales and adjusted EBITDA for the year ended December 31, 2017 of $966 million in revenues and $128 million, respectively.

Jakob A. Mosser, Chief Executive Officer of Coveris: “We are very excited about the sale of our Americas business to TC Transcontinental. This sale will enable us to focus on our operations in Europe, where we are one of the largest players in the flexibles and rigid packaging market. This supports our recent strategic focus on delivering high performance and sustainable packaging solutions for our customers in the food, pet food, medical and pharmaceutical markets.”

Upon the closing of the Americas Sale, the Company’s remaining operations will consist of its Rigid, EMEA, and UK Food & Consumer businesses, and it will have manufacturing facilities in 14 countries, 44 strategically located facilities and over 8,000 employees. Pro forma for the sale of the Americas business, the Company’s remaining operations generated sales and adjusted EBITDA for the year ended December 31, 2017 of €1.4 billion and €132.4 million (including €21 million of expected synergies in 2018), respectively.

The Americas Sale is subject to customary closing conditions, including regulatory approvals and it is expected to close in mid 2018. Goldman Sachs & Co. LLC and Wells Fargo Securities served as financial advisors to Coveris Americas. Kirkland & Ellis, LLP acted as legal advisors to Coveris Americas. This announcement contains information that prior to its disclosure may have constituted inside information under European Union Regulation 596/2014 on market abuse.

 

Source: businesswire.com

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