New Zealand businessman Graeme Hart is considering $5bn sale of drink cartons manufacturer SIG Combibloc Group, people known with the matter said.
Goldman Sachs Group has been hired by Hart's packaging conglomerate, Reynolds Group Holdings to explore alternatives for the packaging major, comprising sale as one option.
SIG, said to be part of the New Zealand-based Rank Group, is expected to attract interest primarily from private equity firms and was acquired by Hart in the year 2007 in a transaction worth $2.3bn.
The company, which manufactures aseptic carton packaging has earnings before interest, tax, depreciation and amortization (EBITDA) of about $500m.
Hart intends to sell SIG in an effort to reduce $18bn debt, which has accumulated through leveraged buyouts, Reuters reported.
The buyouts comprise the acquisition of Hefty trash bags maker Pactiv for $6bn in 2010 and the purchase of plastic container producer Graham Packaging in 2011, for $4.5bn.
Based in Neuhausen am Rheinfall, Switzerland, SIG produces packaging for juices, milk, soups and sauces. The company supplies carton packaging and filling machines for beverages and food.
In 2008, Hart acquired Alcoa's Packaging & Consumer group in a transaction worth $2.7bn and renamed it as Reynolds Packaging Group later on.
Image: SIG building in Neuhausen am Rheinfall (Switzerland). Photo: courtesy of Roland zh.
