New Zealand's richest man Graeme Hart may sell SIG Combibloc for about $US5 billion, according to a report from Reuters.
Graeme Hart. Photo: AAP / Mick Tsikas
Citing unnamed sources, Reuters said Graeme Hart's packaging conglomerate, Reynolds Group, had hired Goldman Sachs to explore alternatives for SIG, including a potential sale.
Hart bought SIG, which makes sterile long-life packs for juices, milk, soups and sauces, in 2007 for $2.3 billion.
Private equity firms are expected to be the main contenders to buy the business which is the world's second largest maker of drink cartons.
SIG, which has more than 5000 employees in 40 countries, has annual operating earnings of about $500 million and may fetch close to 10 times that amount in a potential deal.
A sale of SIG, which is based in Neuhausen am Rheinfall in Switzerland, would help Hart trim the $18 billion debt pile his packaging empire has accumulated through leveraged buyouts.
