B&C exits Schur Flexibles again
The B&C Group is divesting its 80% stake in packaging manufacturer Schur Flexibles (Wiener Neudorf, Lower Austria), which it acquired in 2021 from US private equity firm Lindsay Goldberg. The exit comes after B&C discovered massive irregularities in the balance sheets of previous years and gross misconduct by former managers at Schur Flexibles.
As became apparent after B&C’s entry into Schur Flexibles, from today’s perspective, Schur’s balance sheets from previous years, which had been certified by renowned auditors at the time, were incorrect and manipulated, and Schur Flexibles’ business results and financial situation were massively overstated. Formal proceedings have since been initiated against the former Schur management for several criminal offenses.
Due to these incidents, the purchase price paid by B&C in 2021 for the Schur shares was, from today’s perspective, far excessive. B&C considers itself to have been deceived as a buyer and to have been the victim of fraud.
In order to enable the necessary recapitalization and restructuring of Schur Flexibles’ finances and loans, B&C is now transferring its shares in Schur Flexibles to a new group of owners around the US investment house Apollo and other Schur creditors.
An agreement to this effect was signed in Frankfurt/Main on June 4, 2022. The closing of the agreement is expected in the fall of 2022 following review by the relevant authorities and the achievement of the necessary conditions.
In addition, the B&C Group will attempt to recover the damages it has incurred as a result of the falsified financial statements and other criminal acts of the various parties involved through claims for damages and existing guarantee insurance policies. Further legal steps based on the ongoing investigations are likely from B&C’s point of view.