EQT launches sale of Danish packaging group Faerch Plast for around €700 mn

Swedish private equity firm EQT has launched the sale of Danish packaging group Faerch Plast for around €700 million ($741 million) Reuters yesterday reported, citing three people close to the matter.

EQT has hired Credit Suisse and investment banking boutique FIH Partners to start an auction, which will kick off in the coming weeks, the report said.

EQT had acquired Faerch in 2014 and a year later expanded the company through acquisitions of Anson Packaging and Sealed Air's European tray business.

Founded in 1969 by Rasmus Færch, the company is a European leader in packaging solutions for the food segments ready meals, fresh meat and fast foods.

It sells its products through food producers, distributors and retailers with customers varying from large international companies to smaller local players.

The Holstebro, Denmark-based company has seven production sites located in Denmark, the UK, the Czech Republic and Spain and employs more than 1,100 people with local operations in more than 15 countries.

Færch Plast offers a full-range of rigid plastic trays and has an extensive product catalogue of more than 3,000 different trays.

Faerch, which is expected to post earnings before interest, tax, depreciation and amortisation of €70-€80 million this year could be valued at 9-10 times that, the report added.