Bosch plant sale of the business with packaging machines

- Bosch will focus resources on necessary transformation
- Packaging technology is not Bosch's core business
- Little entrepreneurial and technological synergy within the Group
- Medium-sized competitors have structural advantages
- All approximately 6,100 employees in 15 countries should be acquired
- The business area remains a stable partner for customers

After intensive and thorough examination of all strategic options, Bosch has decided to look for a buyer for the packaging machinery business (PA). This concerns the Pharma and Food sectors of the Packaging Technology business area.

In view of the Bosch Group's focus on the necessary transformation, no entrepreneurial or technological synergies sufficiently relevant to the future of the division have emerged within Bosch. Therefore, packaging technology is not part of the Group's core business. PA operates in project business within specialized areas of the packaging industry. Additionally, the company operates in a medium-sized competitive environment. As a result, competitors have structural advantages. Bosch is convinced that packaging technology needs a different setup to respond more flexibly to the specific requirements of the special machinery market. The specialized machinery manufacturer Robert Bosch Manufacturing Solutions GmbH is an independent legal entity and will remain within the Bosch Group.

Perspectives

"This decision enables Bosch to focus more strongly on future topics such as the transformation of the Group and the orientation towards future digitalization, such as the Internet of Things, as well as to bundle existing resources accordingly," explains Dr. Stefan Hartung, Managing Director of Robert Bosch GmbH responsible for the Energy and Building Technology as well as Industrial Technology divisions.

"PA and Bosch will both benefit from this decision. Packaging technology can adapt more flexibly to the various requirements of the medium-sized market with a different setup – Bosch can focus entirely on the upcoming, comprehensive transformation of the Group," adds Hartung. Additionally, the Bosch Group pursues the strategy of positioning itself competitively. Consequently, Bosch continuously adjusts its business fields – this decision is part of that process.

Good products and increasing demand

The products of packaging technology enjoy a very good reputation in their respective industries due to the technology used, new concepts, and a highly capable team; recent innovations have been awarded.

"My colleagues in the PA management and I are convinced of the future success of the business. We are one of the largest companies in our industry and clearly on the right track. We will remain a strong, stable division and, as a proven team – even under a new owner – provide our customers with excellent production solutions and services," states Dr. Stefan König, Chairman of the Management Board of Robert Bosch Packaging Technology GmbH. "PA has always been a largely independent division within the Bosch Group and will be able to further tailor itself to the industry's needs in the future. Our customers will benefit from this."

Although PA faced economic difficulties in certain areas over the past two years, the company has successfully begun to reposition itself under new leadership and has already restructured many units for the growing market. The company expects increasing demand in the coming years. The Pharma division is developing positively due to its high technical differentiation and is growing. The Food division has strengthened its core areas and aims to further expand its market position.

PA currently employs around 6,100 people worldwide in packaging technology. The goal is for all employees and locations to be taken over by a buyer. Employees and employee representatives were informed about the decision today. They will continue to receive regular updates about the progress of the sale process.