Buyout group SVPGlobal has put UK food packaging group Linpac up for sale in a potential 500 million euro ($556 million) deal led by investment bank Rothschild, several people close to the matter said.
Bidders have until the middle of next week to submit first-round offers for the maker of plastic boxes, trays and films for vegetables, meat, cake and frozen food, they said.
Private equity investors with a penchant for packaging assets such as PAI, Blackstone (BX.N), CVC or Lindsay Goldberg are expected to hand in bids.
Linpac expects to post earnings before interest, taxes, depreciation and amortization (EBITDA) of just below 60 million euros this year, and some of the bids are expected to value the company at 8 times that, around 480 million euros.
SVPGlobal is hoping for a higher valuation.
Linpac peers like RPC (RPC.L), Sonoco (7902.T), Berry (BERY.N), Bemis (BMS.N), Sealed Air (SEE.N), and Huhtamaki (HUH1V.HE) trade at an average multiple of more than 11 times their expected core earnings.
SVP, Rothschild and the potential bidders declined to comment or were not immediately available for comment.
SVP took control of the company in late 2014 after buying up large chunks of debt related to a 2003 takeover of Linpac by private equity group Montagu for 860 million pounds ($1.1 billion), which had been backed by a 600 million pounds loan.
Linpac supplies over 70 countries worldwide and has 2,500 employees.