BWAY Corporation, a leading North American supplier of general line rigid containers, has announced entering into a definitive agreement to acquire Ropak Packaging (“Ropak”) from the LINPAC Group in a transaction valued at approximately $265 million. Platinum Equity had acquired BWAY in November 2012 and immediately launched operational and M&A initiatives to strengthen and grow the company.
Ropak is a North American producer of rigid, plastic shipping containers serving the consumer goods, food processing, construction, dairy, petroleum and other industries.
“BWAY and Ropak are complementary businesses that make great sense together and will create new opportunities,” said Louis Samson, Partner at Platinum Equity. “There are compelling synergies between the two businesses that make this accretive transaction a unique combination. The acquisition is expected to enhance BWAY’s earnings power and also serve as a deleveraging event as we integrate the two companies.”
BWAY and Ropak executives said integrating the businesses would be beneficial for customers of both companies.
“Ropak is known for innovative products and exceptional customer service,” said Kenneth Roessler, BWAY’s President and Chief Executive Officer. “Integrating Ropak into our business creates an excellent opportunity to broaden our product portfolio and expand our reach. The transaction is a natural and exciting combination.”
Mr. Roessler noted that business will continue as usual as all parties work toward a prompt closing of the transaction.
“A combination with BWAY represents an exciting opportunity for Ropak and its employees,” said Greg Toft, President of Ropak. “The Ropak management team is looking forward to working with BWAY and Platinum Equity to integrate the businesses seamlessly and take the combined business to the next level.”
Under the terms of the agreement, BWAY will acquire Ropak from LINPAC via a stock purchase. The transaction is subject to customary closing conditions, including the expiration or earlier termination of the Hart-Scott Rodino waiting period.