French investment group Wendel Group has agreed to acquire Austria-based Constantia Flexibles where the latter has been valued at €2.3bn ($2.8bn).
As a part of the transaction, Wendel intends to support Constantia Flexibles over the long term as the majority shareholder along with its minority shareholders.
The Constantia Flexibles group specialises in producing flexible packaging and labelling solutions for the food, pet food, pharmaceuticals and beverage industries.
Employing over 8,000 people, the company operates from 43 sites across 18 countries.
The transaction is expected to be completed in the first half of 2015.
Speaking about the transaction, chairman of Wendel's executive board, Frédéric Lemoine said: "In acquiring Constantia Flexibles, Wendel is carrying out a major transaction that is right in line with the strategy announced. Constantia Flexibles is a very strong industrial company and one of the world's leaders in packaging solutions.
"The segment in which the company specializes, flexible packaging, is being buoyed by underlying, worldwide market trends, and in the future, Constantia Flexibles will be able to grow both by organic means and by acquisition, as the market is still very fragmented."
Wendel is buying the company from One Equity Partners (OEP) and the H Turnauer Foundation. OEP had acquired Constantia in 2009, when it took over the majority of the company and used to hold 75% of Constantia Flexibles. 25% belonged to the H Turnauer Foundation.
CEO of Constantia Flexibles, Thomas Unger said: "In recent years, Constantia Flexibles has developed from a regionally-focused provider in Europe into a globally-active group present in the most attractive and fastest growing markets for flexible packaging. We have positioned the company outstandingly for further profitable growth, and we will be working with our new owner to realize this potential in the future."
