US-based Berry Global Group has signed a definitive agreement to acquire Clopay Plastic Products Company for $475m on a debt-free, cash-free basis.
Clopay supplies printed breathable films and develops elastic films and laminates for multiple industry segments, including hygiene, healthcare, construction and industrial protective apparel.
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Berry CEO Tom Salmon said: “The proposed acquisition of Clopay is directly aligned with our fundamental strategic initiatives.
“We are extremely excited with what Clopay’s global capabilities and unique technology platform will add to our organisation.
With a workforce of 1,500 employees, Clopay holds significant footprint across the US, Germany, Brazil and China.
In the fiscal year ended on 30 September this year, it reported sales of around $461m and $53m in operating EBITDA.
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By GlobalDataSalmon added: “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 has planned to fund the acquisition through existing liquidity or additional debt offering and expects that the deal will generate annual cost synergies of nearly $20m.
The acquisition is also expected to optimise production capacities of a large portfolio of products, as well as reduce material and conversion costs.
The transaction is subject to customary closing conditions and regulatory approvals and expected to close early next year.
