Coveris Holdings SA (“Coveris” or “the Company”), a premier global packaging manufacturer, today announced that it has realigned its operations into four business units: Americas, Rigid, EMEA, and UK Food & Consumer. This action was taken to continue to enhance how the company delivers service in response to changing market demands.
“Many of our global customers want to be served locally by partners who have deep, first-hand knowledge of their products and markets,” said Dimitri Panayotopoulos Chairman and Interim Chief Executive Officer of Coveris. “We believe this strategy—creating leaner, more focused business units—recognizes this customer preference and will enable us to better meet their needs.”
Coveris further announced as part of its go-forward strategy that it is exploring strategic alternatives for its Americas and Rigid packaging businesses following the realignment, for the continued optimization of the company. Goldman Sachs & Co. LLC and Wells Fargo Securities have been retained to advise on the Americas business and Rothschild & Co. will begin advising on the Rigid business in the first quarter of 2018.
The review of strategic alternatives is not anticipated to adversely impact the Company’s operations, ongoing commitments to customers, or investment in the business. Coveris has adequate liquidity to continue to operate and grow its business, and as discussed on its September 26 investor call, the Company expects to report higher EBITDA in the fourth quarter of 2017 over the prior year.
“With approximately $1 billion in revenues and a roster of longstanding customer relationships, the Americas business is well positioned for continued growth.” added Panayotopoulos. “Our Rigid business is likewise ready for the next step in its evolution.”
As Coveris implements this strategy, it also expects to successfully conclude its CEO search process in the fourth quarter of 2017.
