Rhone Capital's Ranpak Is Said to Work With Goldman on Sale

(Bloomberg) -- Rhone Capital LLC is considering a sale of paper-packaging company Ranpak Inc., according to people familiar with the matter.

The company, which could fetch up to $1.5 billion, has about $100 million in annual earnings before interest, taxes, depreciation and amortization, said one of the people, who asked to not be identified because the matter isn’t public.

Ranpak, based in Concord Township, Ohio, is working with Goldman Sachs Group Inc. to seek a buyer, they said.

Representatives for Rhone and Goldman Sachs declined to comment. A representative for Ranpak didn’t immediately respond to requests for comment.

Ranpak comes to market amid a string of deals in paper and packaging, much of it driven by private equity firms drawn to the sector’s steady income and consolidation potential. Novalex Holdings Inc., backed by Carlyle Group LP, agreed to buy Waddington Group from Newell Brands Inc. last month while Leonard Green & Partners closed the purchase of ProMach Inc. in March.

Ranpak makes paper packaging and paper-packaging machinery for the automotive, electronics, medical supply and glassware industries, among others, according to its website. Rhone Capital acquired the company for an undisclosed sum in 2014 from Odyssey Investment Partners LLC.

Rhone Capital, started in 1995 by two former Lazard Ltd. bankers, agreed to sell a minority stake last year to Eurazeo SA, the French investment firm.

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