Packaging News
Saint-Gobain could fetch €4.5bn with packaging unit sale, experts predict
Saint-Gobain could raise as much as €4.5bn through the planned flotation of its packaging business, experts have predicted.
Analysts at bank Credit Suisse have said that funds from the proposed IPO, which was announced earlier this week, could be used to reduce the building materials suppliers debts or fund acquisitions.
Saint-Gobain, which is the world’s biggest building materials business, first put its glass packaging unit up for sale in 2007 but put the plans on hold because of the recession.
However, it revealed this week that it was planning to float around half of the glass packaging business in early 2011. The unit had sales last year of around €3.4bn.
In a research note, Arnaud Lehmann and Harry Goad predicted that Saint-Gobain’s packaging unit could fetch €4bn in a sale. Other valuations of the business ranged from €3.2bn to €4.5bn.
“A disposal of the entire division to private equity funds remains a possibility, as the business has a strong and stable cash flow,” the analysts said. “Launching the IPO process may be a way to increase private interest.”
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