New Zealand’s richest man, Graeme Hart is potentially looking to sell SIG Combibloc Group, the world’s second largest maker of drink cartons, for close to US$5 billion.
Reuters reports that Hart’s packaging conglomerate, Reynolds Group Holding Ltd has engaged Goldman Sachs to explore a potential sale with initial interest expected to come from private equity firms.
Goldman Sachs refused to comment on the potential sale, while representatives from Reynolds and SIG did not immediately respond to Reuters requests for comment.
Hart acquired SIG for US$2.3 billion in 2007 and the company currently has annual operating earnings of around US$500 million. Industry speculators suggest that the sale could fetch up to ten times that figure.
According to Reuters, the sale of SIG would play a key part in Hart’s efforts to cut the US$18 billion debt that his packaging empire has accumulated due to leveraged buyouts including the US$6 billion acquisition of trash bag manufacturer, Pactiv in 2010, and the US$4.5 billion purchase of plastic container manufacturer, Graham Packaging in 2011.