American private equity firm Cerberus Capital Management has agreed to acquire packaging firm Closure Systems International (CSI) through one of its affiliates.
A definitive agreement has been signed with a packaging company based in Auckland, New Zealand, Reynolds Group Holdings.
The agreement covers the North American, Costa Rican and Japanese businesses and related CSI facilities.
Cerberus managing director Lucas Batzer said: “CSI continues to be at the forefront of innovation, addressing customers’ needs for functional, efficient and environmentally conscious beverage closures. The enthusiasm and capabilities of the CSI leadership team have impressed us from the start.
“We look forward to supporting the company with financial and operating resources to ensure CSI is able to extend its track record of delivering high-quality, innovative solutions to meet the evolving needs of its customers and to expand into new markets.”
Reynolds Group will continue to own and operate CSI’s closures businesses in Europe, the Middle East, Egypt and South America.
The transaction is subject to necessary approvals and specific closing conditions and will close over the next two quarters.
CSI president and CEO Floyd Needham said: “We are pleased to welcome Cerberus as our new long-term partner. Through our consistent focus on innovation, reliability and quality, CSI has become a leader in the packaging industry with a world-class customer base.
“Cerberus brings a wealth of financial, operating and industry expertise to this exciting new partnership, and we are confident that together we will be able to drive CSI’s next phase of growth.”
Goldman Sachs served as an exclusive financial advisor and Debevoise & Plimpton acted as legal counsel to Reynolds Group and CSI. Schulte Roth & Zabel served as legal counsel to Cerberus.
CSI designs and manufactures closures and high-speed application systems. The company offers a range of closures for bottle and container manufacturers in North America.
The firm’s closures are designed for multiple sector applications, including carbonated soft drinks, bottled water, juices, isotonics, teas, adult beverages, liquid dairy, foods and automotive fluids.
The company also offers high-speed beverage closure application equipment and technical consulting services.
In September, CSI introduced new one-piece closure portfolio, featuring an ergonomic design.