Bosch confirms sale of its packaging division to CVC Capital Partners
Proposals from Bosch planning to sell its Waiblingen-based packaging machinery business in Germany to a newly incorporated company managed by CVC Capital Partners (CVC) are being progressed this autumn.
As Confectionery Production previously reported, the move to sell the division was originally put forward in July 2018, with the firm stating that it wished to focus on other areas of its global operations as a priority.
The terms of the deal are not being released, but according to Bosch, the company, which serves sectors including confectionery and bakery markets, will remain intact, which was its stated preference rather than breaking individual units up in separate sales. While a value was not disclosed, according to Reuters, the Bosch unit has been valued at around €850 million.
In terms of its outlook, the company said its consolidation process had identified mobility and connectivity of the Internet of Things as a major area of its future activities, including shaping future digitalisation processes across industry.
The new managers of the business, equity and advisory firm CVC, has a total of 24 offices in Europe, Asia, and the United States, and currently manages more than US$75 billion of assets.
Bosch confirmed the two parties signed an agreement yesterday, on July 11, 2019 effecting the transfer of the entire packaging technology business and its 6,100 associates in 15 countries, with completion of the sale subject to the approval of various bodies, including antitrust authorities, and is expected to close at the turn of 2020.
Dr. Alexander Dibelius, managing partner of CVC, said: “Bosch Packaging Technology is a strong company in an attractive market with long-term growth prospects. Packaging Technology has an excellent reputation for quality and innovation, a broad product range, a global footprint, and experienced associates. Together with the management team, we will work to take the business forward in the years ahead, and to make it even more competitive.”
In addition, Dr. Stefan König, president of Robert Bosch Packaging Technology GmbH, commented that the move would offer a partnership that would build a strong platform for future success.
He said: “Just under two years ago, we completely modified our strategy. It now includes working on a completely new range of smart and sustainable process and packaging technologies. This will allow us to offer our customers even more attractive product solutions and services in the future. Our customers and our associates will benefit from the progress we have made.”
Bosch management board member Dr. Stefan Hartung, also welcomed the move. He added: “With its experience in growing companies over the long term, its broad industrial expertise, and its viable strategy for taking the division forward, CVC was the right choice for us. The growth concept it has presented, as well as the investments it plans to make, are very promising. For Packaging Technology and all its associates, our aim was to find a reliable new owner with a long-term approach, under whose leadership the business can develop successfully. We have achieved just that.”
