From Packaging News

According to Reuters, Finnish investor Ahlstrom Capital and Swedish private equity firm Accent have mandated Swedish bank SEB for a sale or stock market listing, one of the news agency’s sources said, adding that the latter option was now seen as the more likely for getting the value the two owners want.

AR Packaging, formed when Ahlstrom and Accent combined their packaging operations in 2011, is one of Europe’s leading companies in the packaging sector. Its core markets are in the folding carton and the flexible packaging in Europe.

The Swedish-based group released figures last month showing that in 2015 the company posted a 27% increase in net sales to €514m and core earnings of €62.5m, with EBITDA margin for rising by 12.2% – the highest margin in its history.

Harald Schulz, president and CEO of AR Packaging, said: “We have, over the last [few] years, gradually improved our value proposition in core segments, with a clear aim [of working] with customers with which we have a strategic alignment [to] create a mutually beneficial relationship.

“This, combined with relentless efforts to improve operational efficiency, reduce [our] cost base and create a winning, performance-based culture, has laid the foundation for strong improvement in profitability.”

In its annual report it indicated that in 2016 it is on course for another profitable year.

AR Packaging acquired the European packaging operations of MeadWestvaco Corporation in 2015. At the time chief executive Harald Schulz said: “We elevate AR Packaging to a top three position in the European folding carton market with a total group net revenue of approximately €550m.”

According to Reuters, the sources added that AR Packaging could fetch a valuation around 8-9 times core earnings including debt but stressed that no deal was certain.