US-based industrial packaging provider Greif has acquired Lee Container, a company that supplies blow-moulded containers, for $300m.
Based in Homerville, Georgia, Lee Container provides containers for the agricultural, speciality chemical, oil and lubricant and pet care markets in North America.
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The firm operates three ‘strategically located’ manufacturing facilities in the US and employs more than 500 employees across North America.
The closure comes a month after the two companies entered an agreement for the deal.
Greif expects to record at least $6m in synergies and performance improvements in the next two years as a result of the acquisition.
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Lee Container’s financial results will be reported under Greif’s Global Industrial Packaging segment.
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By GlobalDataGreif president and CEO Ole Rosgaard said: “We are thrilled to welcome our Lee Container colleagues to Greif.
“Completion of this acquisition is very exciting for both companies. Lee is a premiere organisation and fits perfectly within the strategic parameters of our repeatable M&A playbook.
“We foresee abundant opportunities to continue growing Lee organically, as well as seeking add-on acquisitions to further broaden our footprint in jerrycans and small plastics.”
The deal is subject to final closing adjustments and was funded through Greif’s existing credit facility.
The addition of Lee Container’s product lines is expected to expand Greif’s global portfolio and expedite its transition to less cyclical end-market exposures.
Greif said the ‘strong cultural fit’ between the two companies would lead to a smooth transition, as well as timely integration and synergy capture.
In September this year, Greif reported revenue of $1.62bn for the third quarter (Q3) of fiscal 2022 (FY22).
The company’s net income for the three months to 31 July was $141.8m, up from $113.0 in Q3 2021.
Its diluted earnings for each Class A share also increased from $1.89 to $2.36 year-on-year.
