US-based private equity company One Rock Capital Partners’ affiliate has signed a definitive agreement with French investor Wendel to acquire Constantia Flexibles.
Based in Vienna, Austria, Constantia is a global packaging company that provides flexible packaging solutions for various blue-chip industry customers and pharmaceutical food and consumer goods companies.
Wendel said it is selling Constantia for a price that will bring in net proceeds of €1.097bn ($1.210bn), representing a multiple of 1.94 times when compared to the total investment made by Wendel in Constantia since 2015.
The French company said the deal’s net proceeds are €84m, which is more than the packaging company’s valuation as stated under Wendel’s net asset value (NAV), published prior to the transaction’s announcement, as of 31 March this year.
Wendel is anticipating that the additional proceeds generated by Constantia via its ongoing assets disposals will further bring up to €1.12bn proceeds.
This valuation is approximately 11% more than the NAV recorded until 31 March 2023 and is nearly 6.8% higher than the NAV registered as on 30 June 2023.
The acquisition is expected to be completed in the second half of this year after all necessary contractual conditions are fulfilled and regulatory authorities give their clearance.
Wendel Group deputy CEO David Darmon said: “The history of Constantia Flexibles within Wendel's portfolio highlights the validity of our long-term investor model, which has enabled us to support the company 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.”
The announcement comes several months after Wendel first began considering the sale of Constantia in November last year.
One Rock’s lead financial advisor and legal advisor for this transaction were JP Morgan and Latham & Watkins, respectively.
Meanwhile, Willkie Farr & Gallagher and Evercore served as the legal and financial advisors to Constantia, respectively.
One Rock partner Telmo Valido said: “We look forward to partnering with Constantia's management team to continue innovating to solve for evolving packaging needs and sustainability requirements of the company’s customers.”
