Saint-Gobain is planning to sell its glass packaging business, Verallia, in a bid to focus on its core building materials operations.
The French group intends to launch the initial public offering of Verallia in the second quarter of 2011, according to reports. The packaging unit, which produces glass bottles and jars for food and drink manufacturers, posted 2009 sales of €3.4 billion. It was first put up for sale in 2007, although the financial crisis of the past three years prevented any disposal.
The group is planning to float less than half of the business initially. It said in a statement that ‘after three difficult years, the general business environment in 2011 is more likely to ensure that the packaging sector will be valued at a price that reflects its true worth’.
Saint-Gobain Chairman and Chief Executive Officer, Pierre-André de Chalendar, added: “For this reason, we are launching the procedure for a possible stock market listing and IPO that would allow investors to participate in the development of this very attractive business.”
