Industrial packaging products and services provider Greif has entered an agreement to acquire Lee Container for a purchase price of $300m.
Grief expects to fund the deal through its existing credit facility.
Lee Container is a manufacturer of high-performance barrier and conventional blow moulded containers and has three manufacturing facilities in Homerville, Georgia; Centerville, Iowa; and Nacogdoches, Texas, US.
With more than 500 employees across the US, the company primarily serves agricultural customers and other speciality chemicals, oil & lubricant, and pet care segments in North America.
Lee Container recorded sales of $162m and adjusted EBITDA of $33m in the trailing twelve months ended 30 September 2022.
The acquisition will increase Greif’s jerrycans and small plastic bottle capacity in North America while also offering exposure in the agricultural and speciality chemicals end markets.
In the first two years of the acquisition, Greif expects to achieve approximately $6m in synergies from the deal.
Greif president and chief executive officer Ole Rosgaard said: “The acquisition of Lee Container is a critical step in our continued Build to Last journey.
“Lee is an exceptionally strategic and cultural fit, with exceptional people and values, as well as a favourable mix of product and end market exposures.
“The Lee acquisition solidifies our commitment to growing our jerrycan and small plastic bottle footprint and adds a further growth engine to our GIP business. I am excited to welcome our new colleagues to the Greif family and look forward to growing our business together with them.”
The all-cash transaction is subject to customary closing conditions, including regulatory clearances.
The deal is expected to close by the end of the calendar year.
In September, Greif reported revenue of $1.62bn in Q3 2022, up from $1.49bn in the same period of 2021.
