Gerresheimer's Rescue Plan Gains Momentum as Asset Sale Attracts Bidders

Shares in pharmaceutical packaging group Gerresheimer have surged, climbing 18 percent in a single session and stabilizing around €21.40, after the company secured crucial breathing room from its lenders. The move has temporarily averted a financial crunch and set the stage for a pivotal asset sale.

The company has reached an agreement with creditors holding 96 percent of its €870 million in Schuldschein loans, extending the maturity until the end of September 2026. Banking partners have also consented. Crucially, key financial covenants linked to leverage ratios have been suspended through the third quarter of 2026. This provides a temporary shield as management executes its stabilization plan.

Central to that plan is the divestment of its profitable US subsidiary, Centor Inc. The specialist in packaging systems for prescription drugs is carried on the books at €292 million. Investment bank Morgan Stanley is managing the sale process, which has drawn significant interest. Gerresheimer reports a double-digit number of potential buyers and aims to complete the transaction before the end of this year.

Should investors sell immediately? Or is it worth buying Gerresheimer?

Proceeds from the Centor sale are intended to alleviate a strained capital structure. Net financial debt recently stood at approximately €1.2 billion, a level that had pushed the company into a precarious position. Analyst Delphine Le Louet of Bernstein described the creditor deal as a "small relief," noting that management's decisions offer transparency and could prevent insolvency. However, she cautioned that the costs of renegotiating the covenants could be €10 to €20 million above the original €100 million estimate.

The financial reprieve comes against a backdrop of unresolved reporting delays. Internal investigations into accounting practices from 2024 and 2025 have postponed the audited 2025 annual report and the first-quarter 2026 statement. Gerresheimer is targeting June 2026 to publish the certified accounts. A separate professional misconduct procedure by audit watchdog APAS is underway against former auditor KPMG, accused of signing off on the 2024 accounts without qualification despite systematic errors in revenue recognition. Grant Thornton has been appointed as a second audit firm to investigate.

Despite the overhang, the underlying business appears stable. Jefferies analyst James Vane-Tempest pointed to a solid order book and confirmed that business development in 2026 is proceeding according to plan. For the full year, management is targeting revenue between €2.3 and €2.4 billion, with an adjusted EBITDA margin of 18 to 19 percent. The forecast is explicitly conditional on stable financing and a positive decision from German financial regulator BaFin.

The share price, while 37 percent above its February low, remains a stark two-thirds below its 52-week high of €64.40, underscoring the trust the company must still rebuild. The next firm date for investors is the half-year report on 14 July 2026. A return to the SDAX index, which would reopen access to passive investment funds, is a longer-term goal but hinges on presenting audited financials by the next index review on 3 June—a deadline now seen as very tight. For now, the immediate crisis has been deferred, with all eyes on the progress of the Centor sale.

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