Syntegon, the German packaging machinery manufacturer owned by CVC Capital Partners, has increased its debt by 40% to €1.6bn to fund a shareholder dividend exceeding €550m ($648m) after an outright sale process was paused, according to a report by Bloomberg.
The report cites unnamed sources familiar with the matter as revealing that the private equity firm is now considering selling a minority stake in Syntegon, potentially to another private equity investor. As part of the move, the company extended its existing institutional leveraged loans by four years and tapped additional balance sheet cash to support the shareholder payout.
The full sale process stalled as potential buyers, including GEA Group AG, balked at CVC’s asking price of more than €4bn. Alternatives considered included a Zurich initial public offering. Syntegon also attracted preliminary interest from a consortium of Clayton Dubilier & Rice and German technology firm Koerber AG, as well as Italian rival Coesia SpA.
Syntegon, formerly Bosch Packaging Technology, supplies packaging machinery to the pharmaceutical and food sectors. CVC acquired the company from Robert Bosch GmbH in 2019 in a deal reportedly valuing the firm at around $1bn.
