CVC Capital Partners-backed Syntegon has increased its debt load by 40% to €1.6bn, equivalent to approximately $1.89bn, in order to fund a dividend payment of more than €550m, or about $648m, according to sources cited by Bloomberg.

As part of the refinancing, the German packaging machinery maker extended its institutional leveraged loans by four years and upsized them to finance the shareholder payout, supplemented by cash from its balance sheet.

The recapitalisation follows CVC’s decision to halt an outright sale process after prospective buyers, including GEA Group, were unwilling to meet an asking price above €4bn, equivalent to roughly $4.32bn.

CVC is now exploring a minority stake sale, which could involve another private equity firm. The company had also considered a Zurich IPO.

Syntegon, formerly Bosch Packaging Technology, produces packaging equipment for the pharmaceutical and food sectors. CVC acquired the business from Robert Bosch in 2019 in a transaction valued at around $1bn.

The €550m dividend recap underscores how private equity sponsors continue to use balance sheet flexibility to generate liquidity when exit markets remain selective and valuation expectations diverge between sellers and buyers.

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