Acquires Graphic Packaging Holding Company’s Flexible Plastics and
Completes Sale of its Kits and Catering Business
EVANSVILLE, Ind.--(BUSINESS WIRE)--Oct. 1, 2013--
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
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
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.
Effective on the transaction date, all employees located in Berry
Plastics’ Bremen, Georgia, facility and the commercial employees
supporting this business became employees of WNA.
Berry Plastics also announced the related closure of its Coon Rapids,
Minnesota, facility. As part of the sale of Berry Plastics’ Kits and
Catering businesses, WNA purchased the equipment and inventory at Coon
Rapids. Over the next several months WNA will transition these assets to
other WNA locations. During this period, Berry Plastics will continue to
operate the facility. It is anticipated that the full closure of the
Coon Rapids facility will occur no later than December 31, 2013.
“At Berry Plastics, we continually evaluate our product and business
portfolio to ensure that we are dedicating resources to those product
lines that are the best strategic fit for our Company. During this
process, it was determined that our Kits and Catering businesses would
be best affiliated with a company, such as WNA, that is a leader within
this market,” said Rich.
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 $4.8
billion in fiscal 2012. 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.
Certain statements and information included in this release may
constitute "forward looking statements" within the meaning of the
Federal Private Securities Litigation Reform Act of 1995. Such
forward-looking statements involve known and unknown risks,
uncertainties and other factors which may cause the actual results,
performance, or achievements of Berry Plastics to be materially
different from any future results, performance, or achievements
expressed or implied in such forward looking statements. Additional
discussion of factors that could cause actual results to differ
materially from management’s projections, forecasts, estimates and
expectations is contained in the companies' SEC filings. The companies
do not undertake any obligation to update any forward-looking
statements, or to make any other forward-looking statements, whether as
a result of new information, future events or otherwise.
Source: Berry Plastics Group, Inc.
Berry Plastics Group, Inc.
Dustin Stilwell, 812-306-2964