B&C Group is divesting its 80% stake in packaging manufacturer Schur Flexibles to Apollo and other creditors due to significant financial irregularities discovered post-acquisition.

Information on the Target

The B&C Group is divesting its 80% stake in Schur Flexibles, a packaging manufacturer based in Wiener Neudorf, Lower Austria. This stake was originally acquired from the American private equity firm Lindsay Goldberg in 2021. The decision to exit follows the discovery of significant irregularities in Schur Flexibles' financial statements for previous years, along with serious misconduct by former management personnel.

Upon B&C's acquisition of Schur Flexibles, audits conducted by reputable accounting firms indicated that the company's financial records for prior years were inaccurate and manipulated. As a result, Schur Flexibles' business performance and financial status were grossly overstated, leading to the initiation of criminal proceedings against the former management regarding various legal violations.

Industry Overview in Austria

The packaging industry in Austria plays a crucial role in the broader European market, characterized by a diverse range of materials and technologies. With a strong focus on sustainability and innovation, Austrian manufa