Bosch will sell its entire packaging machinery business to a newly incorporated entity managed by Luxembourg private investment firm CVC Capital Partners (CVC).
Bosch announced a year ago it was seeking a buyer for its packaging technology business, including its food and pharmaceutical packaging division. Employing 6,100 associates across 15 countries, Bosch sought for all associates and locations to be retained by the eventual buyer.
Bosch believes that the packaging technology division’s competitiveness, and its future viability, can be enhanced through this new partnership, and that significant stimuli for growth can be created.
CVC is a leading private equity and investment advisory firm with 24 offices in Europe, Asia, and the United States. It currently manages more than $75 billion of assets.
“My colleagues and I in executive management regard this new partnership with CVC as a huge opportunity for our future success,” said Stefan König, president of Robert Bosch Packaging Technology GmbH. “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.”
Alexander Dibelius, managing partner of CVC, called Bosch Packaging Technology a “strong company” 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,” he said. “Together with the management team, we will work to take the business forward in the years ahead, and to make it even more competitive.”
Terms of the purchase were not disclosed. The sale is subject to the approval of various bodies, including antitrust authorities, and is expected to close at the beginning of 2020.