KKR & Co. has emerged as the preferred bidder to buy Portuguese packaging maker Logoplaste, according to people familiar with the matter. The US private equity firm is in exclusive talks with Logoplaste’s owners after Apax Partners LLP dropped out of the process. A deal could be reached in the coming weeks, though deliberations are ongoing and there is no certainty that the talks will result in a transaction.

Ontario Teachers’ Pension Plan Board, which owns 60% of Logoplaste, has been working with advisers on a sale of the business. Bloomberg News previously reported that KKR and Apax had submitted binding offers for Logoplaste, which could be valued at more than €1.7 billion. Logoplaste generates about €1 billion in annual revenue and operates more than 60 plants across 16 countries, supplying customers including Kraft Heinz Co., Diageo Plc and L’Oréal SA.

Founded in 1976, the company pioneered a “wall-to-wall” manufacturing model. Logoplaste Chairman Filipe de Botton and board member Alexandre Relvas own the remaining 40% and have the option to remain as shareholders.