Wendel
60.6
(1) as of December 31, 2019.
Constantia Flexibles expands its international footprint to serve its global clients
Constantia Flexibles is a global leader in flexible packaging. The group produces flexible packaging solutions for the consumer and pharmaceutical industries.
Key figures
Discover how sustainability is embedded in Constantia Flexibles' business model
2019 Sales
€1,534.3m
Amount invested by Wendel
€565m since 2015 (2)
Employees
c. 8,800
No.3 worldwide
CDP
2% top evaluated companies
Accident frequency rate
-67% since 2015
Women (total headcount)
21%
Recyclable products
60%
(2) Amount of equity invested by Wendel as of December 31, 2019.
Why did we invest in Constantia Flexibles?
Founded by Herbert Turnauer in the 1960s, the Vienna-based Constantia Flexibles group produces flexible packaging solutions, for the consumer and pharmaceutical industries. Constantia Flexibles has successfully developed its activities outside Europe and, over the last five years, has become a global leader in flexible packaging. The group now has c. 8,800 employees in 22 countries.
The flexible packaging market for fast moving consumer goods, in which Constantia Flexibles operates, offers a combination of stability and growth. The business of Constantia Flexibles is largely independent of economic cycles because the group caters to the daily needs of end consumers. In addition, there are long-term megatrends supporting the growth of the flexible packaging market, such as urbanization and the increased consumption of single portions, tied in with the decreasing size of households and the development of the middle classes, especially in emerging markets. For several years, this market’s growth has outpaced that of the economy in GDP terms, whether in developed or emerging countries.
In this fast-growing, resilient but highly fragmented market, Constantia Flexibles has definite competitive advantages enabling it to play a decisive role in the consolidation of the flexible packaging industry and offering long-term growth potential, such as:
- the group’s long-standing relationships with major global customers;
- the size of the group, enabling Constantia Flexibles to harness economies of scale;
- the group’s technological edge, ability to innovate, sustainability solutions and robust manufacturing facilities;
- the ability of Constantia Flexibles to pursue an external growth strategy, as demonstrated by the nine acquisitions carried out since 2010, including four in emerging markets. The acquired companies have aggregate sales in the region of €700 million.
On March 27, 2015, Wendel announced it had finalized the acquisition of Constantia Flexibles for an enterprise value of €2.3 billion, or around 9x 2014 EBITDA, and had invested €640 million in equity for a 73% stake in the Company, alongside the AREPO Foundation’s €240 million, 27% investment. Subsequently, on September 22, 2015, Wendel signed an agreement with Maxburg Capital Partners (“MCP”), an investment company backed by the RAG Foundation, to syndicate a minority share of its investment in Constantia Flexibles. Accordingly, in November 2015, MCP acquired approximately 11% of the capital of Constantia Flexibles from Wendel for €101 million.
Following this transaction, Wendel, the AREPO Foundation and MCP participated in a €50 million capital increase for Constantia Flexibles, each subscribing to a pro-rata stake, to finance the acquisitions of Afripack and Pemara.
Following the capital increase and MCP’s entry into the capital of Constantia Flexibles, Wendel’s equity investment in Constantia Flexibles totalled €565 million. Wendel is the Company’s controlling shareholder, with 60.6% of the share capital.
Key milestones of the investment
-
12.23.2014
Wendel is to acquire Austrian group Constantia Flexibles, a world leader in flexible packaging -
03.02.2015
The H. Turnauer Foundation will invest €240 million alongside Wendel in Constantia Flexibles -
03.27.2015
Completion of the acquisition of Constantia Flexibles -
06.25.2015
Alexander Baumgartner is appointed CEO of Constantia Flexibles -
11.26.2015
Wendel contributes €31 million to a capital increase -
07.17.2017
Constantia Flexibles sells its Labels business to MultiColor -
11.02.2017
Constantia Flexibles completes sale of Labels division to MultiColor -
06.30.2020
Pim Vervaat appointed CEO of Constantia Flexibles
- Wendel is to acquire Austrian group Constantia Flexibles, a world leader in flexible packaging - 229.41 KB - PDF
- The H. Turnauer Foundation will invest €240 million alongside Wendel in Constantia Flexibles - 227.11 KB - PDF
- Completion of the acquisition of Constantia Flexibles - 230.57 KB - PDF
- Alexander Baumgartner is appointed CEO of Constantia Flexibles - 136.69 KB - PDF
- Wendel contributes €31 million to a capital increase - 250.96 KB - PDF
- Constantia Flexibles sells its Labels business to MultiColor - 385.85 KB - PDF
- Constantia Flexibles completes sale of Labels division to MultiColor - 63.17 KB - PDF
- Pim Vervaat appointed CEO of Constantia Flexibles - 231.43 KB - PDF
Read the press release
Outlook for development
Constantia Flexibles will pursue 3 priorities as part of its Value Creation Program:
- accelerating the commercial development of the EcoLam technology (recycable monomaterial plastic solution);
- boosting organic growth both in Pharma and Consumer business with focus on most profitable and growing markets;
- further implementing both short and mid-term cost reduction measures to preserve margins and cash generation.
“We know that Wendel will support the growth strategy and development of Constantia Flexibles over the long term.”
Sustainable development and extra-financial information
Integrating Corporate Social Responsibility (CSR) commitments in respect for the environment into its business activities, Constantia Flexibles pays particular attention to continual improvements in the consumption of raw materials, which are essentially aluminum, plastics, paper, and chemicals like inks and solvents. Already in 2018, Constantia Flexibles pledged that 100% of its packaging solutions will be recyclable by 2025 and has set an absolute GHG emission reduction target in accordance with climate science. Accordingly Constantia Flexibles uses appropriate procedures to monitor the possible impact of its products on the environment, in particular by performing life cycle assessments.
Constantia Flexibles understands the value of initiatives supportive of sustainable improvements of its products as a great opportunity to accelerate success factors by building up for long-term relationships with our key stakeholders. Constantia Flexibles’ ambition is to supply flexible, superior packaging solutions that improve people’s daily lives. This priority takes the form of global initiatives implemented by the Group which far surpass legal requirements.
For more information, see Chapter 4 of Wendel's Universal Registration Document.
Constantia Flexibles’ ESG approach
Sustainable products:
100% recyclable products by 2025, as part of its signing of the New Plastics Economy's global commitment.
In 2019, opening of Ecoflex Ahmedabad, the first plant in the world designed to produce recyclable flexible packaging only.
Climate change:
A 40% reduction in Greenhouse Gas (GHG) emissions by 2023 compared to 2005 (Scope 1 and 2 emissions).
Health & Safety at work:
“Zero loss - No harm” ambition notably illustrated by a 67% reduction of lost time injury frequency rate since 2015 (date of entry into Wendel’s portfolio).
Partnerships:
Active participation in sectoral projects and initiatives related to the supply chain (eg Plastics New Economy, CEFLEX, Sustainable Packaging Coalition, Save Food initiative of the UN)
Top management
Tanja Dreilich
CFO
Wendel's role in corporate governance
Supervisory Board
Seif Khoufi
Jérôme Richard
Josselin de Roquemaurel
Nomination Committee
Seif Khoufi
Josselin de Roquemaurel
Audit Committee
Josselin de Roquemaurel