BRUSSELS, June 24, 2024 /PRNewswire/ — A new report from The Conference Board, based on a survey of 78 of Europe’s largest employers, finds that the EU’s new Pay Transparency Directive is pushing businesses to set global policies on pay. 55% of senior human resource executives surveyed say that they have, or are planning, a single approach to pay across their international operations. However, the report also highlights the need for accelerated action to implement the Directive, with 41% of respondents–whose companies collectively employ approximately three million people globally–saying that they have yet to begin preparing.

Under the Directive, effective starting June 2026, companies that employ more than one hundred workers in the EU must disclose information about pay levels to employees and candidates, and report annually on their gender pay gap. If the gap is higher than five percent, they must take mitigating action or face mandatory fines.

The report, Countdown to the EU’s New Law on Pay Transparency, notes that there are strong concerns among employers about the new requirements. Many are apprehensive about how the regulation will affect wage bills, competitiveness, and the ability of managers to reward their best performers.

The report was launched at The Conference Board’s Future: Reward Europe event, held in Brussels. In a separate live poll conducted at the gathering of senior executives responsible for pay, 44% of participants said that they were “concerned or very concerned” about the impact on wage bills, with only 3% “not at all concerned”. Of the 75 respondents to the live poll, 43% said that the Directive could increase their European wage bills by between 2.6% and 5%.

“Our analysis shows that complying with the Directive is data-intensive and requires a high level of cross-functional collaboration, so it is a concern that many businesses have not yet begun to prepare for it,” said Jean-Marc Verbist, Leader of The Conference Board Human Capital Center, Europe. “Compliance is likely to come with a significant cost. Beyond the anticipated short-term rise in wage bills, businesses will also need to invest in training, data gathering, and internal and external communications. Chief Human Resource Officers need to ensure their boards and senior managers are aware of the risks of non- and low-quality compliance: not just potential fines, but also increased workplace tensions and loss of productivity.”

Advertisement

Key highlights from the report include:

SETTING GLOBAL STANDARDS:

Pay transparency is gathering momentum around the world:

• 10% of survey respondents already have a global framework for pay transparency in place, while 45% say that they are planning a global approach.
• 30% say that they will restrict pay transparency to EU regulatory requirements, while 15% remain undecided.

REGULATORY READINESS

Businesses are off to a slow start in preparing to comply with the EU Directive:

• 16% of businesses assess themselves as being a significantly long way from readiness, and 41% have not yet begun preparing for implementation.
• Less than 2% of businesses believe that they are already compliant with the regulation, while 10% believe they are close to readiness.
• 44% of respondents say that their internal systems and data require additional work to capture and analyze the data required by the Directive.

IMPACT ON EMPLOYEES

Managers see the upside of pay transparency regulations, but there are risks:

Advertisement

• 30% of respondents believe that the Directive will help them to address the gender pay gap and improve female representation at a senior level.
• 25% say that the Directive will enable managers to have open discussions with staff and debunk perceptions around pay.
• In discussion, executives voiced concerns about the impact on labor relations and negotiations with social partners, including unions and works councils.

About The Conference Board  
The Conference Board is the member-driven think tank that delivers Trusted Insights for What’s Ahead™. Founded in 1916, we are a non-partisan, not-for-profit entity holding 501 (c) (3) tax-exempt status in the United States. www.ConferenceBoard.org 

Logo – https://mma.prnewswire.com/media/624268/The_Conference_Board_Logo.jpg

View original content:https://www.prnewswire.co.uk/news-releases/report-eu-directive-prompts-businesses-to-set-global-pay-standards-but-progress-is-slow-302180209.html

NEW YORK, June 24, 2024 /PRNewswire/ — KPS Capital Partners, LP (“KPS”) announced today that it has entered into an agreement for its portfolio company, Eviosys (the “Company”), to be sold to Sonoco Products Company (“Sonoco”, NYSE: SON), a Hartsville, South Carolina-based global leader in high-value sustainable packaging, for €3.615 billion (or approximately $3.9 billion). Sonoco has the option, under certain circumstances, to pay up to $200 million of the purchase consideration in the form of Sonoco stock. The transaction is expected to close by the end of 2024, and is subject to completion of required works council consultations and the receipt of required regulatory approvals and other customary closing conditions.

Eviosys is a leading global supplier of metal packaging, producing food cans and ends, aerosol cans, metal closures and promotional packaging to preserve the products of hundreds of consumer brands. Eviosys has the largest metal food can manufacturing footprint in the EMEA region, with over 6,300 employees in 44 manufacturing facilities across 17 countries in Europe, the Middle East and Africa. Eviosys is a global leader in sustainability, with a product portfolio comprised entirely of infinitely recyclable metal packaging and industry-leading performance across a broad spectrum of sustainability metrics.  

KPS created Eviosys to acquire Crown Holdings, Inc.’s (“Crown”, NYSE: CCK) EMEA Food and Consumer Packaging Business in August 2021 in a highly complex global corporate carve-out transaction. Crown retained a 20% ownership interest in Eviosys. KPS assembled an accomplished management team, led by Chief Executive Officer Tomás López, to lead the transformation of Eviosys into one of Europe’s largest and most profitable packaging companies. In under three years of ownership, KPS, in partnership with management, successfully transformed Eviosys into a fully independent and significantly more profitable company focused on growth, innovation and sustainability.  

KPS and Eviosys’ management team structurally improved the strategic position and competitiveness of Eviosys, resulting in an approximate 50% improvement in profitability in under three years of KPS ownership. KPS invested nearly €225 million in capital expenditures and significant resources to execute a comprehensive business transformation plan focused on optimizing Eviosys’ manufacturing footprint to drive asset utilization, reducing operational costs and growing volumes in new and existing geographies. Eviosys made remarkable progress in advancing its sustainability objectives, surpassing its publicly committed greenhouse gas emissions reductions targets and achieving an EcoVadis Platinum rating in 2023, placing it in the top 1% of all companies ranked by EcoVadis. Eviosys today is a thriving, independent company providing its customers with innovative and sustainable metal packaging solutions at the highest standards for quality and at scale.

Michael Psaros, Co-Founder and Co-Managing Partner of KPS, said, “Eviosys is another demonstration of KPS’ investment strategy of seeing value where others do not, buying right and making businesses better, across economic cycles, geographies and industries over decades.

Advertisement

We are proud of Eviosys’ extraordinary transformation under our ownership. Eviosys demonstrates our ability to build industry-leading companies on a global basis. The Company’s success is a direct result of KPS’ commitment to, and investment in, the Company’s R&D, innovative new technologies and products, manufacturing facilities and people. We believe the acquisition of Eviosys by Sonoco will benefit the combined companies’ customers, employees and investors. The industrial logic is compelling.

We congratulate and thank Tomás López, Eviosys’ Chief Executive Officer, along with the Company’s senior management team, for their strategic vision and brilliant execution, which resulted in tremendous value creation under KPS’ ownership in a short period of time. We also thank Crown for being a highly constructive and supportive partner.”

Tomás López, Chief Executive Officer of Eviosys, added, “For over 200 years, Eviosys and its predecessor companies have provided best-in-class metal packaging that enhances the appeal of our customers’ brands. KPS recognized the investment opportunity and upside presented by Eviosys. KPS’ extensive manufacturing expertise and experience provided us with the plan and resources that resulted in enormous value creation. We thank KPS for creating a culture in our company focused on continuous improvement, manufacturing excellence and environmental stewardship. We are proud of our people, products and service. By combining with Sonoco, we will work to bring our high quality, sustainable and innovative packaging solutions to new and existing customers around the globe. Our companies share a strong commitment to providing the highest levels of customer service, safety for our employees, and operating efficiencies.”

Rothschild & Co is serving as sole financial advisor and Paul, Weiss, Rifkind, Wharton & Garrison LLP is serving as legal counsel to KPS and Eviosys. Morgan Stanley & Co. LLC and J.P. Morgan Securities LLC are serving as financial advisors to Sonoco and Freshfields Bruckhaus Deringer LLP is serving as Sonoco’s legal counsel.

About Eviosys
Eviosys is a leading global supplier of metal packaging, producing food cans and ends, aerosol cans, metal closures and promotional packaging to preserve the products of hundreds of consumer brands. Eviosys has the largest metal food can manufacturing footprint in the EMEA region, with over 6,300 employees in 44 manufacturing facilities across 17 countries in Europe, the Middle East and Africa. Eviosys is a global leader in sustainability, with a product portfolio comprised entirely of infinitely recyclable metal packaging and industry-leading performance across a broad spectrum of sustainability metrics. To learn more, visit www.eviosys.com.

Advertisement

About KPS Capital Partners, LP
KPS, through its affiliated management entities, is the manager of the KPS Special Situations Funds, a family of investment funds with approximately $21.6 billion of assets under management (as of March 31, 2024). For over three decades, the Partners of KPS have worked exclusively to realize significant capital appreciation by making controlling equity investments in manufacturing and industrial companies across a diverse array of industries, including basic materials, branded consumer, healthcare and luxury products, automotive parts, capital equipment and general manufacturing. KPS creates value for its investors by working constructively with talented management teams to make businesses better and generates investment returns by structurally improving the strategic position, competitiveness and profitability of its portfolio companies, rather than primarily relying on financial leverage. The KPS Funds’ portfolio companies generate aggregate annual revenues of approximately $19.6 billion, operate 223 manufacturing facilities in 26 countries, and have approximately 47,000 employees, directly and through joint ventures worldwide (as of March 31, 2024). The KPS investment strategy and portfolio companies are described in detail at www.kpsfund.com.

About Sonoco
With net sales of approximately $6.8 billion in 2023, Sonoco has approximately 22,000 employees working in more than 300 operations around the world, serving some of the world’s best-known brands. With our corporate purpose of Better Packaging. Better Life., Sonoco is committed to creating sustainable products and a better world for our customers, employees, and communities. Sonoco was named one of America’s Most Responsible Companies by Newsweek. For more information on the Company, visit our website at www.sonoco.com.

Forward-Looking Statements
This presses release contains “forward-looking statements”, including statements regarding the contemplated transaction. Forward-looking statements can generally be identified by the use of words such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “forecast,” “intend,” “may,” “plan,” “project,” “potential,” “seek,” “should,” “think,” “will,” “would” and similar expressions, or they may use future dates.  Forward-looking statements in this document include, without limitation, statements regarding the Company’s expectations as to the completion and timing of the contemplated transaction, including with respect to works council consultations, regulatory approvals and the satisfaction of other closing conditions, and the anticipated impacts of the contemplated transaction.  These forward-looking statements are subject to assumptions, risks and uncertainties that may change at any time, and readers are therefore cautioned that actual results could differ materially from those expressed in any forward-looking statements.  Factors that could cause actual results to differ include, among other things: the occurrence of any event, change or other circumstances that could give rise to the termination of the definitive agreement or could otherwise cause the transactions contemplated therein to fail to close; the inability of the Company or Sonoco to satisfy the conditions to closing; and other risks and uncertainties.  The Company undertakes no obligation to update any forward-looking statements as a result of new information, future developments or otherwise, except as expressly required by law.  All forward-looking statements in this document are qualified in their entirety by this cautionary statement.

Statements By Portfolio Company Executives

Certain statements about KPS made by portfolio company executives herein are intended to illustrate KPS’ business relationship with such persons, including with respect to KPS’ facilities as a business partner, rather than KPS’ capabilities or expertise with respect to investment advisory services. Portfolio company executives were not compensated in connection with the communication of such statements, although they generally receive compensation and investment opportunities in connection with their portfolio company roles, and in certain cases are also owners of portfolio company securities and/or investors in KPS-sponsored vehicles. Such compensation and investments subject participants to potential conflicts of interest in making the statements herein.

Advertisement

Logo – https://mma.prnewswire.com/media/1023167/KPS_Logo.jpg

View original content:https://www.prnewswire.co.uk/news-releases/kps-capital-partners-to-sell-eviosys-to-sonoco-for-3-615-billion-302180168.html

• Constellation Cold Logistics (“Constellation”) provides temperature-controlled storage infrastructure to a wide-range of food producers via a network of 26 storage facilities across seven countries in Western Europe and the Nordics
• The Company offers critical food preservation services that are essential to the modern food supply chain, helping to feed the world safely while reducing food waste
• EQT will support Constellation as it looks to further entrench its market-leading position, execute identified M&A opportunities and deliver major expansion developments within Europe

STOCKHOLM, June 24, 2024 /PRNewswire/ — EQT is pleased to announce that the EQT Infrastructure VI fund (“EQT”) has agreed to acquire Constellation Cold Logistics (“Constellation” or the “Company”) from Arcus Infrastructure Partners. Financial details are not disclosed.

Constellation was established in 2020 by Arcus Infrastructure Partners, which brought together three businesses located in Belgium, Norway and the Netherlands. Just four years later, Constellation today owns and operates 26 large cold storage facilities across seven countries in Western Europe and the Nordics. The London headquartered firm employs 700 people and is expected to generate revenues over EUR 150 million in FY24.

Constellation provides temperature-controlled storage capacity and complementary services to a wide range of food producers, traders and retailers. Its sites are located either close to clients’ production and processing premises or near critical logistics routes to major cities, ports or food hubs. By offering warehousing and value-added services in these strategic locations in an efficient, flexible and responsive manner, Constellation provides a critical service to its customers that ensures their supply and logistics chains remain smooth and safe.

The European cold storage market features strong underlying growth of around seven percent per year, driven by multiple factors. For one, growing populations are leading to a greater demand for food. At the same time, the popularity of frozen and chilled foods is growing as the sector and customers recognize how these categories reduce food waste and improve quality. Producers are also increasingly adopting outsourcing, just-in-case supply chain strategies, and value-added services as the industry matures.

EQT will support Constellation as it works to capture this attractive market opportunity. Led by deeply experienced CEO Carlos Rodriguez, the Company has already proven its ability to successfully execute M&A, having completed ten deals in the past four years. With EQT, Constellation will be able to further expand within its existing catchment areas and enter new countries, both organically and through consolidation of the highly fragmented European market. Additional investment will be made into Constellation’s automation and digital capabilities to solidify a stronger foundation for growth.

Francesco Malvezzi, Managing Director within the EQT Value-Add Infrastructure Advisory Team, said: “Constellation is one of the leading cold storage providers in Europe with an excellent track record of growth, both organically and through M&A. It offers strong diversification across geographies, customers and end-markets and has impressive service offerings, customer focus and facilities. We’re excited to start working with Carlos and the team to help build an even stronger platform for continued growth. With EQT’s expertise in owning infrastructure companies that provide inherent essential services to society, we’ll be able to support Constellation as it works to deliver safe, quality food to people across Europe.”

Advertisement

Carlos Rodriguez, CEO of Constellation, said: “In four short years, Constellation, with support from Arcus, has expanded into one of the largest cold storage players in Europe, enabling our clients to benefit from enhanced accessibility and efficiency in their supply chains. We will maintain an absolute focus on responsiveness and customer service together with our commitment to sustainability on our path to net-zero. We’re excited to continue implementing our 2030 strategic plan with the support of EQT, which brings strong infrastructure experience, global scale, and deep expertise in areas like sustainability and digitalization. I’d like to thank the Arcus team for its dedication to this point but, most of all, I’d like to thank all Constellation’s employees for their hard work and continuous support as the company evolves.”

The transaction is subject to customary conditions and approval. It is expected to close in October 2024.

EQT was advised by UBS (M&A), Roland Berger (commercial), Milbank (legal), PwC (financial, tax).

With this transaction, EQT Infrastructure VI is expected to be 40 – 45 percent invested (including closed and/or signed investments, announced public offers, if applicable, and less any expected syndication) based on target fund size and subject to customary regulatory approvals.

Contact
EQT Press Office, [email protected] 

Advertisement

The information contained herein does not constitute an offer to sell, nor a solicitation of an offer to buy, any security, and may not be used or relied upon in connection with any offer or solicitation. Any offer or solicitation in respect of EQT Infrastructure VI will be made only through a confidential private placement memorandum and related documents which will be furnished to qualified investors on a confidential basis in accordance with applicable laws and regulations. The information contained herein is not for publication or distribution to persons in the United States of America. Any securities referred to herein have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the “Securities Act”), and may not be offered or sold without registration thereunder or pursuant to an available exemption therefrom. Any offering of securities to be made in the United States would have to be made by means of an offering document that would be obtainable from the issuer or its agents and would contain detailed information about the issuer of the securities and its management, as well as financial information. The securities may not be offered or sold in the United States absent registration or an exemption from registration.

This information was brought to you by Cision http://news.cision.com

https://news.cision.com/eqt/r/eqt-to-acquire-constellation-cold-logistics–the-third-largest-cold-storage-owner-operator-in-europe,c4005344

The following files are available for download:

https://mb.cision.com/Main/87/4005344/2880801.pdf Advertisement	PR_EQT to acquire Constellation_240624
https://news.cision.com/eqt/i/constellation-cold-logistics,c3313766	Constellation Cold Logistics

View original content:https://www.prnewswire.co.uk/news-releases/eqt-to-acquire-constellation-cold-logistics-the-third-largest-cold-storage-owner-operator-in-europe-302180125.html

Advertisement