Klöckner Pentaplast - comment

Gerresheimer, the German packaging group today announced the acquisition of Italian packaging group - Bormioli Pharma for €800 million or a multiple of 10x. This is a good read-through for Klockner Pentaplast as a majority of that company’s EBITDA comes from pharma packaging. Using a similar multiple on EBITDA (which we think is conservative as Klockner is a market leader and has larger scale) generated by Klockner Pentaplast would cover the senior secured portion of their debt structure and highlightS the high-quality packaging assets that the group owns.