GERMANY – Robert Bosch GmbH, the multinational engineering and technology company plans to sell its Waiblingen-based packaging machinery business to a newly incorporated entity managed by CVC Capital Partners (CVC).
Bosch and CVC have signed an agreement to transfer its entire packaging technology business including its 6,100 associates in 15 countries to be managed by CVC.
The transaction whose financial details were not disclosed is expected to close by the end of the year.
The transfer does not however include the company and its Pharma and Food units which remain under Bosch’s watch.
“My colleagues and I in executive management regard this new partnership with CVC as a huge opportunity for our future success,” said Dr. Stefan Hartung, member of the board of management of Robert Bosch GmbH and chairman of the supervisory board Robert Bosch Packaging Technology GmbH.
“Just under two years ago, we completely modified our strategy. It now includes working on a completely new range of smart and sustainable process and packaging technologies.
“This will allow us to offer our customers even more attractive product solutions and services in the future. Our customers and our associates will benefit from the progress we have made.”
According to Bosch, the divestment allows it to consolidate its resources as it focuses on mobility and connectivity over the internet of things.
Areas of attention include shaping the transformation process and digitalization and the partnership enhances the Packaging Technology division’s competitiveness and future viability for growth, said Bosch.
CVC brings in experience in growing companies over the long term, its broad industrial expertise, and its viable strategy for taking the division forward.
Based in Luxemburg, CVC is a leading private equity and investment advisory firm with 24 offices in Europe, Asia, and the United States.
It currently manages more than US$75 billion of assets.
“Bosch Packaging Technology is a strong company in an attractive market with long-term growth prospects,” said Dr. Alexander Dibelius, Managing Partner of CVC.
“Packaging Technology has an excellent reputation for quality and innovation, a broad product range, a global footprint, and experienced associates.
“Together with the management team, we will work to take the business forward in the years ahead, and to make it even more competitive.”