(Bloomberg) — Gerresheimer AG, the German maker of packaging for drugs and cosmetics, is exploring a potential sale amid interest from private equity funds, people with knowledge of the matter said.
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Dusseldorf-based Gerresheimer is working with advisers to gauge interest from possible buyers, the people said, asking not to be identified because the information is private. Shares of Gerresheimer jumped as much as 15% in German trading on Friday, their biggest intraday gain in almost a year. They were up 11% at 4:53 p.m. in Frankfurt, giving the company a market value of about €2.8 billion ($2.9 billion).
Warburg Pincus, EQT AB and KKR & Co. are among suitors that have been studying the business, the people said. Gerresheimer confirmed in a statement Friday that it’s in early-stage discussions with private equity investors that have made informal, non-binding expressions of interest about a potential takeover of the company.
Gerresheimer will evaluate any potential offers in the best interest of the company, according to the statement. Talks are at a very early stage and it’s unclear whether they will lead to a formal takeover offer, it said.
The company has been in the crosshairs for a takeover by buyout firms for years because it’s been seen as a prime breakup candidate due to the different nature of its two businesses. Several private equity funds that looked at Gerresheimer decided not to pursue a deal at the current valuation, some of the people said.
Activist investor Ricky Sandler, the founder of Eminence Capital, built a stake of 5.4% in Gerresheimer as of late last year. The company has had dialogue with Sandler since June but does not know his “agenda,” a Gerresheimer spokesperson told Reuters in October. Eminence, a $7 billion investment manager, has recently taken aim at targets ranging from British consumer goods company Reckitt Benckiser Group Plc to gambling firm Entain Plc.
The cosmetics arm of Gerresheimer makes plastic bottles and glass jars for perfume, skin cream, deodorant and toner. Another division makes more complex drug packaging and delivery systems, ranging from syringes and glass vials to advanced products like injectors, inhalers and wearable infusors.
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