Friday, December, 06, 2019 06:15:40
  • A pre-qualification round was held for bidders after which they were given access to management, with deeper knowledge on packing business to follow in April
  • Final bids will be held in late May or June

German Industrial holding firm Koerber and Italian engineering group Coesia have planned to offer Bosch for packaging machinery business. Private equity companies like Triton, Bain, KKR, Cinven and Onex are expected to make initial bids by mid-April deadline which is anticipated to fetch a valuation of 500-600 million euros, including debt.

Earlier this year, Bosch put the business for sale as a part of portfolio overtake to emphasize electric and autonomous car technologies. Due to regulatory crackdown on diesel, car industry and its suppliers have stressed to invest in electric and self-driving vehicle.

According to Reuters, the unit will reportedly post earnings of around 40 million euros before tax, depreciation, interest and amortization (EBITDA) by this year.

A pre-qualification round was held for bidders after which they were given access to management, with deeper knowledge on packing business to follow in April. Reportedly, the final bids will be held in late May or June.

Bosch, Koerber and other bidders declined to comment while Coesia was not available for any immediate comment.

In recent years, business relations of packaging industry and private equity groups have strengthened to make cash flows of the firms stable. Reportedly, an auction of paper packaging maker is also underway because of this consolidation.

Many private equity groups are preparing themselves for first round of bid which is on March 27, expecting 40 million euros of EBITDA for the company.

For the record, German company Bosch, headquartered in Gerlingen, was founded in 1886 by Robert Bosch. It makes machines for pharmaceuticals and food packaging. It employs 6,100 employees and has revenue worth 1.3 billion euros ($1.5 billion).