Berry Plastics to Acquire Global Business
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As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe NowEvansville-based Berry Plastics Group, Inc. (NYSE: BERY) has announced an agreement to purchase a unit of England-based Rexam PLC. The $135 million deal for the health care containers and closures business is expected to close in the second quarter. Rexam has eight U.S. health care manufacturing locations, including one in Franklin. March 24, 2014
News Release
EVANSVILLE, Ind. – Today Berry Plastics Group, Inc. (NYSE:BERY) announced that it has entered into a definitive agreement to acquire the U.S., Mexico, and India portions of Rexam's Healthcare Containers and Closures (C&C) business. Berry Plastics has also made a binding offer to purchase the French portion of Rexam's C&C business, which Rexam may accept after completion of the required consultation process with the works council in France. Upon completion of both transactions, Berry Plastics would pay approximately $135 million for the entire Healthcare Containers and Closures business unit, with the closing expected to take place in the second calendar quarter of 2014. The Company expects the acquisition, which will be funded from existing liquidity, to be deleveraging after achieving synergies.
The Healthcare Containers and Closures business produces bottles, closures and specialty products for pharmaceutical and OTC (over-the-counter) applications. The transaction includes eight manufacturing locations – five in the United States and one each in Mexico, France, and India, with total employment of approximately 1,500 and 2013 sales of $262 million.
“The proposed acquisition of the Rexam Healthcare Containers and Closures business is directly aligned with our fundamental strategic initiatives,” said Jon Rich, Chairman and CEO of Berry Plastics. “The U.S. portion of the business has a highly synergistic fit with our current healthcare product portfolio, while the facilities located outside the United States will allow us to increase our presence in the attractive global healthcare market segment.”
About Berry Plastics
Berry Plastics Group, Inc. is a leading provider of value-added plastic consumer packaging and engineered materials delivering high-quality customized solutions to our customers with annual net sales of over $4.6 billion in fiscal 2013. With world headquarters in Evansville, Indiana, the Company’s common stock is listed on the New York Stock Exchange under the ticker symbol BERY. For additional information, visit the Company’s website at www.berryplastics.com.
Source: Berry Plastics Group Inc.