Robert Bosch is a German multinational engineering and technology company. Bosch is mostly known for its consumer goods products (household appliances and power tools). Their other core operating areas are spread across three business sectors; mobility (hardware and software), industrial technology (including drive and control) and energy and building technology.

They plan to sell their packaging technology division to global buyout firm CVC Capital Partners in a deal that could value the business at up to €850m, including debt.

The plan was launched more than a year ago. Italian engineering group Coesia, German industrial holding Koerber as well as private equity firms KKR and Bain have submitted their bids in this fierce held competition.

The reason Bosch is doing so is part of a portfolio overhaul which will see it emphasise electric and autonomous car technologies.

The packaging sector has been a hotbed of deal activity both for buyout firms aiming to deploy their record amounts of cash and publicly traded companies seeking scale to expand their geographic reach and portfolio of products.

The packaging industry has seen a wave of consolidation in recent years with private equity groups being drawn to the stable cash flows of the firms, which tend to grow in line with GDP. The industry has had limited impact from the worries about plastic pollution in the world’s oceans.

On top of this, the car industry and its suppliers have come under pressure to accelerate investment in electric and self-driving vehicle technologies, following a regulatory crackdown on diesel.†

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One competitor in the space is Italy’s IMA which makes machines for pharmaceuticals and food packaging. There are many similar M&A deals. US buyout firm Centerbridge Partners acquired European packaging company Solidus Solutions for €330m. Meanwhile in March US packaging manufacturer Berry Global Group beat out private equity giant Apollo Global Management with a £3.34bn bid to acquire UK rival RPC Group.