Activist Asset Value Investor calls for changes at Gerresheimer

By Isabel Demetz

(Reuters) -London-based investment fund Asset Value Investors on Thursday called upon German medical packaging maker Gerresheimer to take steps to restore its market value, a move partially supported by another top 30 investor.

Activist investor AVI, which holds a 3.5% stake in Gerresheimer, believes new financial leadership is needed to restore the company's relationship and credibility with investors, it said in an open letter to the company. AVI also urged Gerresheimer to establish a capital allocation committee and exit its moulded glass business as soon as possible.

Gerresheimer, whose shares are down 31% in the year to date, was unable to comment when contacted by Reuters.

The packaging and medical equipment company cut its revenue

and profit margin guidance for 2025 on Monday, hit by weak demand in the cosmetics sector and a decline in demand for containment solutions for liquid medications.

Union Investment, which holds a 0.9% stake in Gerresheimer,said it backed the calls for new leadership and a sale of themoulded glass business but did not see a need for a capitalallocation committee. "The management has repeatedly published profit warnings andshown that they do not have their business under control,"Christian Reindl, portfolio manager at Union Investment, toldReuters. Reindl said, as a result of the 800 million euro ($917 million) acquisition of Bormioli Pharma in December last year, the debt of the company is too high and needs to be reduced through the sale of the moulded glass business. He said capital allocation should be handled by new management. Shares in Gerresheimer were up 2.3% at 1305 GMT.($1 = 0.8723 euros)

(Reporting by Isabel Demetz in Gdansk, editing by Milla Nissi-Prussak and Matt Scuffham)