(Bloomberg) -- Stone Canyon Industries, a closely held investment firm whose backers include billionaire investor Michael Milken, is considering a public share sale for its packaging subsidiary, people with knowledge of the matter said.
The investment firm is in talks with advisers about a U.S. initial public offering of its packaging unit, SCI PH Inc., in the second half of the year, said the people, who asked not to be identified because the information is private. SCI Packaging, as the unit is also known, is generating about $700 million a year in earnings before interest, taxes, depreciation, and amortization and could be valued at more than $8 billion in an IPO, including debt, the people said.
No final decision has been made and Stone Canyon could elect to keep the business, the people said.
SCI Packaging was created by Stone Canyon through the combination of packaging groups BWAY Corp. and Mauser Group NV. Stone Canyon bought BWAY from private equity firm Platinum Equity in 2016 and Mauser from Clayton Dubilier and Rice in 2017, according to the firm’s website. In December, Stone Canyon sold a minority stake in SCI Packaging to Ontario Teachers’ Pension Plan, Public Sector Pension Investment Board and Arcadia Investment Partners for $850 million.
Stone Canyon, Ontario Teachers and PSP Investments declined to comment. Representatives for SCI Packaging subsidiaries BWAY and Mauser as well as Arcadia didn’t immediately respond to requests for comments.
BWAY is predominantly a North American supplier of general line rigid containers, including paint cans, steel pails, aerosol cans and oil cans. Mauser, which traces its origins to 1896 in Bruehl, Germany, focuses on the manufacturing of products such as fiber, steel and plastic drums.
Los Angeles-based Stone Canyon, led by co-Chief Executive Officers James H. Fordyce and Adam Cohn, focuses on buying companies valued at $100 million to $2 billion, across industries including packaging and transportation. The firm draws its capital from private sources, including high-net worth individuals such as Milken, the people said.
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