Constantia Flexibles Seeks IPO by Year-End

Constantia Flexibles Group GmbH said Wednesday it is planning to go public by the end of the year in what could be a record-setting Austrian initial public offering.

The Wall Street Journal reported in July the offering could value the company at up to 2 billion euros ($2.74 billion). If so, Constantia's IPO would be the largest-ever Austrian IPO, eclipsing Strabag SE's (STR.VI, SBAGY) offering in October 2007, which generated proceeds of around $1.88 billion, according to Dealogic.

As part of the listing, shares from a capital increase as well as some shares of majority owner One Equity Partners will be sold. However, the flexible packaging company didn't provide details on the planned shareholder structure following the deal.

About 75% of Constantia belongs to J.P. Morgan Chase & Co.'s (JPM) private equity arm, One Equity Partners, with the rest in the hands of a holding company belonging to an heir of Constantia's founder.

In preparation for the deal, Constantia said it is planning to form a holding entity.

Constantia has focused on global expansion in 2013 with a series of acquisitions in Mexico, the U.S. and India. The purchases added about 2,600 staff to the company and will likely produce a total sales volume of about EUR350 million to group revenue this year. The company said access to stock markets is the next step as the company looks to fund its continuing expansion into growing markets around the globe.

Constantia has over 8,000 employees worldwide and produces packaging for food and pharmaceutical companies, like drink labels and pill packages. Largely due to the early-2013 acquisitions, the company's sales in the first half of the year were up 22% at EUR803.4 million, while earnings before interest and tax were also up 12% at EUR61.8 million. Prior to recent acquisitions, sales in 2012 were EUR1.3 billion.

Deutsche Bank AG (DB, DBK.XE), Goldman Sachs (GS) and J.P. Morgan will be responsible for the deal.

Write to Shane Strowmatt at [e-mail] and Eyk Henning at [e-mail]

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