Packaging maker Pregis Corp. will sell its Kobusch-Sengewald business unit to Sun European Partners LLP for $160 million.
Deerfield Ill.-based Pregis will use proceeds to repay part of its asset-based lending facility as well as for debt repayment, general corporate purposes, and future reinvestment, the firm said in an Oct. 17 news release.
Kobusch-Sengewald GmbH, based in Warburg, Germany, supplies specialized flexible packaging films to the food, consumer goods and medical industries, along with semi-rigid and rigid packaging to the high-end food market. It operates six plants, with two in Germany, three in the United Kingdom and one in Egypt.
Chicago's William Blair & Co. LLC served as sell-side adviser to Pregis.
Buyer Sun European Partners is the London-based unit of Sun Capital Partners Inc. of Boca Raton, Fla., which has invested in more than 270 companies worldwide with combined sales upward of $40 billion. Sun's plastics portfolio includes France's Albéa (formerly Alcan Packaging's beauty unit), U.K.-based Britton Flexibles Ltd., Germany's Paccor, Exopack Holding Corp. of Spartanburg, S.C., and POP Displays of Yonkers, N.Y.
Kobusch-Sengewald sales for the 12 months ended Sept. 30 were $211.6 million, with adjusted earnings before interest, taxes debt and amortization of $24.8 million, according to Pregis.
The company on Oct. 3 announced it would sell its Hexacomb paper packaging unit to an affiliate of Boise Inc. for $125 million, with proceeds used similarly to the Kobusch-Sengewald sale.
Pregis operates in 18 countries, and employs 4,000. Corporate sales totaled $873.2 million for 2010. According to Securities and Exchange Commission filings, 63 percent of its sales are outside the U.S.
Plastics News estimated Pregis' 2010 North American film and sheet sales at $190 million.