Gerresheimer’s Twin Tracks: A Tech Upgrade and a Fire Sale to Escape the Crisis

Gerresheimer navigates a BaFin probe over accounting irregularities and a rejected Silgan bid, while partnering with Milliken on sustainable packaging and reaffirming 2026 targets.

The Düsseldorf-based pharmaceutical packaging group Gerresheimer is navigating a deeply divided reality. On one side, it is forging ahead with a new technology partnership that promises safer, more sustainable packaging. On the other, it remains entangled in a complex accounting scandal that has drawn the scrutiny of Germany’s financial regulator, BaFin, and forced it to reject a lucrative takeover bid. The stock, trading at around €23.68, has lost roughly 59% over the past year, though it has clawed back 22% in the last 30 days.

A Barrier Breakthrough with Milliken

Gerresheimer has struck a deal with US materials specialist Milliken & Company to deploy a novel additive solution called LeneX UltraGuard. The technology is designed to improve the moisture barrier in certain plastic pharmaceutical packaging by up to 40%, a significant leap for drug safety. An added benefit is a reduction in material usage, which aligns with the company’s sustainability ambitions. The two firms plan to showcase the results at the Interpack trade fair in Düsseldorf in early May.

This operational bright spot comes as the company reaffirms its financial targets for the 2026 fiscal year. Management is guiding for revenue of up to €2.4 billion and an adjusted operating margin between 18% and 19%. The business is performing in line with expectations so far, according to the company.

The Offer That Wasn’t Taken

In April, Gerresheimer’s management made a decisive call that has shaped the current narrative. It rejected a non-binding offer from US packaging giant Silgan Holdings, which had signaled an interest in March at €41 per share — more than double the market price at the time. Instead of selling, the board opted to pursue its own restructuring path.

Central to that plan is the sale of Centor Inc., a US subsidiary specializing in packaging systems for prescription drugs. The process is already underway, with a double-digit number of interested parties conducting due diligence. Morgan Stanley is advising on the transaction, which Gerresheimer expects to close this year. At the end of 2024, Centor was valued at €292 million on the company’s books.

The Accounting Quagmire

The real drag on the stock is the unresolved balance sheet crisis. At its core are so-called “bill-and-hold” arrangements, where Gerresheimer invoiced clients for goods but delayed delivery, effectively booking revenue prematurely. An independent law firm confirmed systematic violations of IFRS standards, totaling €35 million in revenue and €24 million in adjusted EBITDA.

BaFin launched a probe in September 2025 and widened it in early March 2026. The investigation now covers incorrectly recorded leasing liabilities of €65.5 million, faulty disclosures on development costs, and unbooked impairment charges in the Advanced Technologies segment. For the 2025 fiscal year, Gerresheimer expects non-cash write-downs of between €220 million and €240 million, mainly tied to projects at its Sensile Medical AG unit and the glass plant in Chicago Heights, which is slated for closure at the end of 2026.

The financial calendar has been thrown into disarray. The audited annual report for 2025 is now due in June 2026, with first-quarter results to follow shortly after. The half-year report is scheduled for July 14. Until the regulatory cloud lifts, investors remain cautious.

Creditors Buy Time

On the financing side, the company has secured a temporary reprieve. Holders of its Schuldschein loan — a type of German debt instrument — voted with 96% approval to extend the deadline for submitting the audited accounts to September 30, 2026. Key financial covenants on leverage have been suspended until the third quarter of 2026.

Despite the turmoil, Gerresheimer is sticking to its 2026 outlook: revenue of €2.3 billion to €2.4 billion, an adjusted EBITDA margin of 18% to 19%, and moderately positive free cash flow. The share price, however, tells a harsher story. At roughly €24, the stock is about 63% below its 52-week high of €64.40, and it has shed nearly 14% since the start of the year. Whether the Centor sale closes before the June audit deadline will likely determine how creditors and investors judge the next phase of this restructuring.