US packaging firm Silgan signals interest for Germany's Gerresheimer, sources say

Reuters03-20 21:11
US packaging firm Silgan signals interest for Germany's Gerresheimer, sources say  

MUNICH, March 20 (Reuters) - U.S. packaging company Silgan Holdings SLGN.N has signalled interest in taking over German medical packaging maker Gerresheimer <GXIG.DE>, according to two sources familiar with the matter.

Silgan is working with advisers on the approach, one source said, cautioning that there is no certainty there will be a bid and that a transaction will be completed.

Gerresheimer declined to comment.

Silgan was not immediately available for comment.

Gerresheimer, worth about 600 million euros ($694 million), has seen its shares drop more than 80% from its 2023 peak and the stock is down 37% since the start of the year.

The company said in late February that Germany's financial regulator BaFin is widening a probe into its financial statements, adding pressure on the medical products maker as it grapples with accounting issues and a plunging share price.

The Duesseldorf-based company held talks last year with private equity investors over a potential sale, but the conversations ended without an agreement.

($1 = 0.8644 euros)

(Reporting by Alexander Huebner in Munich, Christoph Steitz in Frankfurt; Additional reporting by Milana Vinn in New York; writting by Andres Gonzalez; Editing by Miranda Murray)

((andres.gonzalez@thomsonreuters.com ; +44 (0) 7551 790019))

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