Bosch to sell its packaging business

Friday June 29, 2018
Written by Manufacturing AUTOMATION
Jun. 29, 2018 - After considering all its strategic options, Bosch has announced it is looking for a buyer for its packaging machinery business (PA), more specifically the pharmaceuticals and food units of the Packaging Technology division.

Citing a need to focus on the transformation ahead, Bosch says it has not identified any sufficiently relevant synergy effects in terms of business or technology that might offer the division prospects for the future within Bosch, noting that packaging technology is not part of the group’s core business.

PA is involved in project business relating to specialized areas of the packaging industry. The company also operates in a competitive environment in which the players are small and medium-sized enterprises (SMEs), and who are therefore at a structural advantage. Bosch is certain its packaging technology operations need to be put on a different footing that will allow them to react more flexibly to the specific requirements of the packaging machinery market. The company’s special-purpose machinery manufacturer Robert Bosch Manufacturing Solutions GmbH is a separate entity, and will remain part of the Bosch Group.

“This decision will allow Bosch to narrow its focus on issues of importance for its future, such as the transformation of the Bosch Group and its future digitalization strategy, including the internet of things, and to pool its resources accordingly,” says Dr. Stefan Hartung, the Bosch board of management member responsible for the Energy and Building Technology and Industrial Technology business sectors.

“Both PA and Bosch will benefit from this decision. A reorganized packaging technology business will be able to adapt more flexibly to the diverse requirements of this typically SME market, while Bosch will be free to focus its attention entirely on the group’s impending profound transformation,” Hartung adds.

From a business perspective, the past two fiscal years were difficult for certain PA units, notes the company. Under new management, however, the company has begun to realign, with some initial success. In the years ahead, the company expects to see increasing demand.

PA currently employs some 6,100 associates in its global packaging technology operations. Its aim is for all its associates and locations to be retained by the eventual buyer.

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