Evansville-based Berry Global Group has announced plans to acquire Ohio-based Clopay Plastic Products Company. The deal, valued at $475 million, is expected to close in early 2018.
Clopay produces breathable films and laminates for a variety of markets, such as hygiene, healthcare and construction. Berry Chief Executive Officer Tom Salmon says the acquisition is directly aligned with the company’s fundamental strategic initiatives.
“We are extremely excited with what Clopay’s global capabilities and unique technology platform will add to our organization," said Salmon. "The combination of Clopay with Berry’s Health, Hygiene, and Specialties division broadens our position within the faster growing health and hygiene markets. Clopay will bring Berry new capabilities in the production of technical films, where they are a known innovator with patent protected breathable hygiene films."
Berry says Clopay’s sales for the previous fiscal year totaled $460 million. The company expects to see annual cost synergies of about $20 million as a result of the acquisition.
The deal remains subject to regulatory approval and customary closing conditions.
Berry Global is also reporting fiscal full-year net income of $340 million, up from $236 million last year. The company says it achieved record net sales of $7.1 billion, which represents a 9 percent increase over the previous year.
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