Berry Plastics Group, Inc. Announces Transactions In Support Of Strategic Initiatives
Today Berry Plastics Group, Inc. (NYSE: BERY), a leading manufacturer of
plastic packaging and engineered materials, announced that it has
finalized two transactions in support of the Company’s strategic
Today Berry Plastics Group, Inc. (NYSE: BERY), a leading manufacturer of plastic packaging and engineered materials, announced that it has finalized two transactions in support of the Company’s strategic initiatives. On September 29, 2013, the Company completed the acquisition of Graphic Packaging’s Flexible Plastics and Film business and, on September 27, the Company completed the sale of its Kits and Catering business. The terms of the transactions were not disclosed. Graphic Packaging’s Flexible Plastics and Film business generated approximately $100 million in revenue for the twelve months ended June 2013. The Company expects the acquisition to be deleveraging after achieving synergies. The Graphic Packaging purchase includes facilities located in Des Moines, Iowa; Milwaukee, Wisconsin; and Schaumburg, Illinois. Approximately 270 individuals are employed at these facilities where wraps, films, pouches, and bags are produced for the food, medical, industrial, personal care, and pet food markets. The newly acquired facilities will be operated in Berry Plastics’ Flexible Packaging Division. Berry Plastics’ Flexible Packaging Division produces high barrier, multilayer film products as well as finished flexible packages such as printed bags and pouches. The largest end uses for the Company’s flexible products are consumer-oriented end markets such as food and beverage, medical, and personal care. “As a growing number of companies explore flexible packaging for their products, it is essential that we pursue initiatives which will allow us to meet the increasing demand in this market segment. The acquisition of Graphic Packaging’s business is in line with our corporate strategy and will allow us to further strengthen our capabilities and capacity, while maintaining an on-going solid customer relationship with Graphic Packaging,” said Jon Rich, Chairman and CEO of Berry Plastics. “We are extremely pleased to welcome the Graphic Packaging Flexible Films employees to the Berry Plastics family.” Berry Plastics completed the sale of its Kits and Catering businesses to WNA a division of the Waddington Group Inc. June LTM sales associated with the Kits and Catering businesses were approximately $26 million. WNA is a leading manufacturer of disposable dinnerware, serving ware, cutlery and custom packaging products.