Stone Canyon Explores $8 Billion Sale of Mauser Packaging

(Bloomberg) -- Stone Canyon Industries is exploring a potential sale of Mauser Packaging Solutions that could fetch as much as $8 billion, people with knowledge of the matter said.

The Los Angeles-based investment firm, whose backers have included billionaire junk bond pioneer Michael Milken, is speaking to advisers about an exit, according to the people. Any divestment process is likely to start in the first half of the year, the people said, asking not to be identified because the information is private. 

No final decisions have been made, and there’s no certainty the deliberations will lead to a transaction, according to the people. A representative for Stone Canyon declined to comment.

Stone Canyon built the packaging business through the combination of Mauser Group, BWAY, NCG and ICS. It bought BWAY from private equity firm Platinum Equity in 2016 and Mauser from Clayton Dubilier & Rice in 2017, according to the firm’s website. The firm considered a U.S. listing in 2018, Bloomberg reported at the time.

A potential sale of the group, now known as Mauser Packaging Solutions, joins a pipeline of similar transactions in the paper and packaging industry. Carlyle Group Inc. is considering options for Novolex Holdings that include selling the packaging company or taking it public, Bloomberg News has reported.

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 Germany, focuses on the manufacturing of products such as fiber, steel and plastic drums.

Stone Canyon, led by co-Chief Executive Officers James H. Fordyce and Adam Cohn, buys and merges companies in targeted industries including packaging, transportation and salt. It acquired K+S AG’s Morton Salt unit last year through portfolio company Kissner Group. The firm draws its capital from private sources including high-net worth individuals. 

©2022 Bloomberg L.P.