The owners of AR Packaging are working on a sale that could value the Swedish business at more than 500 million euros ($569 million), two sources familiar with the matter said.
Finnish investor Ahlstrom Capital and Swedish private equity firm Accent have mandated Swedish bank SEB for a sale or stock market listing, one of the people said, adding that the latter option was now seen as the more likely for getting the value the two owners want.
Ahlstrom, Accent and SEB declined to comment.
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. It recently refocused on cigarette packaging, the other source said.
In 2015, it posted sales of 514 million euros and core earnings (EBITDA) of 62.5 million euros. The company said in its annual report it aims to maintain its profitability in 2016.
AR Packaging could fetch a valuation around 8-9 times core earnings including debt, the sources said, cautioning that no deal was certain.
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 in March that the family owners of Portuguese plastics packaging firm Logoplaste had hired Credit Suisse to study options for the business.
Source : reuters.com