Germany-based Bosch to sell part of its packaging machinery business

Citing a need to focus on its core business, Bosch is seeking a buyer for its packaging machinery business, which includes the pharmaceutical and food units of its Packaging Technology (PA) division.

“With the Bosch Group needing to focus on the transformation ahead, 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,” the company says in a release.

“Bosch is certain that 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.”

“This decision will allow the 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 Stefan Hartung, the Bosch board of management member responsible for the Energy and Building Technology and Industrial Technology business sectors.

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.

Separating it from the Bosch Group will allow it to react more flexibly to the specific requirements of the packaging machinery market, the company said.

However, the company’s special-purpose machinery manufacturer Robert Bosch Manufacturing Solutions GmbH is a separate entity, and will remain part of the Bosch Group.

“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 said. It also is the Bosch Group’s strategy to structure its operations competitively.

“PA has always led a largely independent existence within the Bosch Group, and will in the future be able to respond even better to the requirements of the packaging industry. Our customers will benefit from this,” said Stefan König chairman of the managing board of Robert Bosch Packaging Technology GmbH.

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. Associates and employee representatives were informed of the decision today.