Private equity firms are being touted as the logical buyers for the US-based Orora Packaging Solutions, Inc. business, which sources believe could be worth between $1 billion and $1.5 billion. With UBS and Jarden on the ticket for the sale of the business, Orora Limited (ASX:ORA) made it known at its full-year result briefing that it was reasonably progressed with a potential sale. Last year, the Morgan Stanley-advised packaging distributor Veritiv Corporation was purchased by Clayton, Dubilier & Rice, advised by Goldman Sachs, so it may be a buyer.

Among other major global private equity funds that invest in the US packaging industry are Kohlberg Kravis Roberts, Apollo Global Management, The Carlyle Group, Bain Capital, PAI Partners, Paine Schwartz, Abror Investments, Champlain Financial, Riverside and L Catterton. Some of the large shareholders in Orora are supportive of the move, given that proceeds could offer some relief to Orora's balance sheet, stretched after its $2.1 billion Saverglass acquisition last year. Yet as always it comes down to the numbers, with a strong price needed to justify parting with a business that has an attractive return on equity, and higher than other parts.

The unit has staged a solid performance under the leadership of Orora boss Brian Lowe, so if the price is not right, shareholders will likely be comfortable for it to be retained.