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Coveris realigns operations into four business units

PKBR Staff Writer Published 08 November 2017

Global packaging manufacturer Coveris has completed a restructuring of its business by splitting it into four units, dubbed Americas, Rigid, EMEA, and UK Food & Consumer.

The company said that the realignment was done to continue to improve on how it delivers service according to varying market demands.

Coveris chairman and interim CEO Dimitri Panayotopoulos said: “Many of our global customers want to be served locally by partners who have deep, first-hand knowledge of their products and markets.

“We believe this strategy—creating leaner, more focused business units—recognizes this customer preference and will enable us to better meet their needs.”

The company also revealed that it is mulling over strategic alternatives for its Americas and Rigid packaging businesses after the realignment, as part of its go-forward strategy.

It has selected Goldman Sachs & Co. and Wells Fargo Securities to advise on the Americas business while Rothschild & Co. will advise it on the Rigid business in the first quarter of next year.

Coveris expects the review of strategic alternatives will not have any adverse impact on its operations, current commitments to customers, or investment in the business.

The packaging manufacturer says that it has sufficient liquidity to continue to operate and expand its business.

Panayotopoulos said that with revenues of around $1bn and a list of longstanding customer relationships, the Americas business is well placed to see continued growth. On the other hand, the Rigid business is also ready to take the next step in its evolution, stated Panayotopoulos.

Earlier in the month, Coveris had announced its intentions to upgrade its labels print and finishing capabilities in the UK.

The packaging company is backed by US-based global investment firm Sun Capital Partners and it manufactures cartonboard packaging in board and lined board formats for the food industry.