(Bloomberg) -- Cerberus Capital Management is in talks to buy packaging firm Closure Systems International from manufacturing conglomerate Rank Group Ltd., according to people with knowledge of the matter.
CSI could fetch up to $1 billion in a sale, said one of the people, who asked to not be identified because the matter isn't public. A final decision hasn't been made and Rank Group could opt keep the business or sell it to another suitor, the people said.
A representative for Cerberus declined to comment. Representatives for Rank Group and CSI didn't respond to requests to comment.
Private equity firms continue to invest in the packaging sector because it tends to perform well through downturns and is highly fragmented, creating an opportunity for growth through acquisitions. Platinum Equity acquired label-maker Multi-Color Corp. this year while Triton Partners agreed in August to buy a stake in All4Labels Global Packaging Group.
Memphis, Tennessee-based CSI makes plastic and aluminum bottle tops for pharmaceutical, beverage and automotive containers. Rank Group acquired the company in 2008 from Alcoa Corp.
Cerberus, founded in 1992 by Stephen Feinberg and William Richter, has $40 billion under management across private equity, credit and real estate, according to its website.
To contact the reporters on this story: Kiel Porter in Chicago at kporter17@bloomberg.net;Gillian Tan in New York at gtan129@bloomberg.net
To contact the editors responsible for this story: Liana Baker at lbaker75@bloomberg.net, ;Alan Goldstein at agoldstein5@bloomberg.net, Matthew Monks, Michael Hytha
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