Buyout group CVC has bought Swedish cigarette pack maker AR Packaging from private equity groups Ahlstrom Capital and Accent, the companies said on Monday.

While no purchase price was disclosed, sources familiar with the matter said that CVC's offer valued the company at just under 450 million euros ($500 million).

AR Packaging, formed when Ahlstrom and Accent combined their packaging operations in 2011, makes pots and cartons for products including ice cream, tea and flour and recently refocused on cigarette packaging.

In 2015, it posted sales of 514 million euros and core earnings (EBITDA) of 62.5 million euros. Its annual report said it aims to maintain its profitability in 2016.

Consumer packaging companies have historically attracted private investors seeking investments more immune to the economic cycle. Such companies often enjoy more reliable cash flows because they are mostly driven by the food and drink industries.

Reuters reported earlier this month that Ahlstrom and Accent mandated Swedish bank SEB for a divestment of AR Packaging.

 

Source : reuters.com

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