Salzgitter weighs sale of bottling-line maker KHS for up to EUR 1bn

German steel group Salzgitter is considering a sale of its filling and bottling equipment division KHS, valued at up to EUR 1bn (USD 1.1bn), as it seeks funds to restructure its steel business. A strategic review of KHS is planned in the coming weeks and private equity firms are seen as possible bidders.

Why this mattersA sale would put one of the largest independent bottling-line makers into new hands, reshaping competition in filling and packing machinery for beverage and food producers.

• Salzgitter is reviewing options to sell KHS GmbH for up to EUR 1bn (USD 1.1bn).
• KHS, based in Dortmund, makes bottling lines for glass and PET bottles, kegs and cans.
• Salzgitter management plans a strategic review of KHS operations in the coming weeks.
• Proceeds would help fund restructuring of Salzgitter's steel business, including a possible mill closure in which it holds a 30% stake.
• Salzgitter's market value is about EUR 1.38bn.
• The review follows a failed attempt by shareholders GP Günter Papenburg and TSR Recycling to raise their stake to 45% plus one share.

Relevant to you? Yes No