(Adds names of potential bidders)
By Claire Ruckin
LONDON May 17 Bankers are preparing around 800
million euros of debt financing to back a potential sale of
German packaging group Constantia Labels by its owner private
equity group Wendel, banking sources said.
Wendel hired Goldman Sachs to handle the sale of the
group, which is part of a larger packaging firm Constantia
First round bids in an auction process are due on May 19,
one of the sources said, adding that potential bidders included
rivals Multi-Color Corporation and Advent-owned Fort Dearborn as
well as private equity firms CVC, Cinven, Blackstone and
The 800 million euro ($891.92 million) debt financing
equates to around 6.5 times Constantia Labels’ expected 113
million euro core profit for this year, including undrawn debt,
the banking sources said.
Leveraged loans and high-yield bonds are both being
considered, the sources said.
Wendel was not immediately available to comment.
Constantia Flexibles was bought by Wendel for 2.3 billion
euros in 2014, after a planned initial public offering by former
owner OEP had failed a year earlier.
Constantia Labels said in its annual report that it posted a
2016 core profit of 100.8 million euros last year on sales of
According to its business plan, core profit could grow to
167 million euros by 2021.
($1 = 0.8969 euros)
(Additional reporting by Arno Schuetze; Editing by Christopher
Mangham and Jane Merriman)