Berry Plastics planning IPO

Published: March 23, 2012 6:00 am ET

Related to this story

Topics Packaging, Injection Molding, Blow Molding, Thermoforming

EVANSVILLE, IND. (March 23, 2:30 p.m. ET) — Packaging giant Berry Plastics Group Inc. is preparing to go public.

The company plans to raise up to $500 million in an initial public offering of it shares. It will use part of that revenue to pay down debt, according to a March 23 filing with the Securities and Exchange Commission.

The filing did not include how many shares Berry plans to issue or the expected price of these shares. It also did not name an underwriter.

Berry, based in Evansville, Ind., is currently owned by investment funds associated with Apollo Group Management LLC and Graham Partners Inc. After the offering is completed, Apollo will retain majority voting power.

More than 400 of Berry’s more than 16,000 employees own equity in the company. As of Dec. 31, 2011, more than 20 percent of fully diluted equity was owned by employees.

The filing did not list Berry’s preferred ticker symbol or what exchange it planned to list on.

Reducing debt is a key reason for the IPO. As of Dec. 31, 2011, the end of the company’s first fiscal quarter of 2012, Berry had a total indebtedness of $4.56 billion, with $29 million in cash and cash equivalents.

The company has piled on debt in recent years as it has grown through acquisition. In its filing, the company said it is “one of the most active acquirers of plastic packaging businesses globally.”

The company has made more than 30 acquisitions since 1988, 10 of them in the past five years. Last year, Berry purchased stretch film producer Linpac Packaging Filmco Inc. for $19 million and bought Rexam plc’s specialty closures business for $360 million. It also consolidated six of its plants.

Berry has 88 plants in the U.S. and operates in 13 locations internationally.

Berry Plastics was founded in 1967 as Imperial Plastics. It became Berry Plastics when it was bought in 1983 by Jack Berry Sr.

Since then, it has become an industry powerhouse. According to Plastics News’ rankings, the company is the largest injection molder in North America and is the third-largest film and sheet maker. It’s also ranked No. 5 in thermoforming and No. 12 in blow molding.

The company divides its business into three categories. The largest, rigid plastics, includes containers, food-service items and closures, and had sales of $2.3 billion in 2011. Engineered materials includes specialty tapes, adhesives, and polyethylene-based film products, and netted $1.45 billion.

The smallest segment, flexible packaging, includes high-barrier and multilayer films and printed bags and pouches, and made $796 million.

Berry serves more than 13,000 customers worldwide.

The company has posted losses of more than $100 million in four of the past five years; in 2009, it posted a net income of $152 million.

Berry had sales of $4.56 billion for the fiscal year ended Oct. 31, 2011, up from $4.25 billion in 2010. But, it posted a loss $299 million in 2011, compared with $113 million in 2010, partly due to higher operating expenses.


Comments

Berry Plastics planning IPO

Published: March 23, 2012 6:00 am ET

Post Your Comments


Back to story


More stories

Image

Sealed Air's move to Charlotte will put it all under 'One Roof'

July 25, 2014 2:03 pm ET

Sealed Air Corp. shook the ground last week by announcing plans to relocate its headquarters from Elmwood Park, N.J., to Charlotte, N.C., in a move...    More

Image

Columbine Plastics moving to new Colorado site

July 25, 2014 11:38 am ET

Custom injection molder Columbine Plastics Corp. plans to move from Boulder, Colo., to the Colorado Technical Center in Louisville, Colo.    More

Image

Metals and plastics company NN to buy Autocam in $300 million deal

July 25, 2014 10:07 am ET

A Tennessee metals and plastics company said it has agreed to acquire auto parts supplier Autocam Corp. in a deal valued at $300 million.    More

Image

Chinese auto suppliers growing in US

July 24, 2014 4:17 pm ET

Two China-based automotive suppliers are expanding in the U.S., according to information released by the Michigan Economic Development Corp.    More

Image

Bemis' product strategy paying off with record earnings per share

July 24, 2014 2:56 pm ET

Bemis Co. Inc. is feeling good about itself these days as the flexible packaging and pressure sensitive materials firm is posting record earnings per ...    More

Market Reports

Plastics Recyclers Data Report & Directory

This exclusive MS Excel database contains all the companies from Plastics News' ranking of top North American Recyclers and Brokers by reprocessed volume and also includes a directory with materials processes, services offered and company contact information. Data is based on primary research by PN editorial staff.

Learn more

2014 Injection Molding Industry Report

GROWTH, OPPORTUNITY IN SIGHT FOR INJECTION MOLDERS IN 2014

In the wake of the economic turbulence earlier in this decade, molders today find themselves in much better shape. Molders are gaining a competitive advantage by investing in people, equipment and seeking inroads into new markets on a global scale.

Growth in the injection molding industry is going to be driven by low financing costs and a continued move to reshore some business.

Learn more

Shale Gas Market - Analysis of North American Region

This report highlights the impact of shale-based natural gas on the North American plastics market and features an in-depth analysis of production trends in the United States during 2013 and a forecast for 2014 and beyond.

Learn more

Upcoming Plastics News Events

September 10, 2014 - September 12, 2014Plastics Caps & Closures 2014

January 14, 2015 - January 14, 2015Plastics in Automotive

February 4, 2015 - February 6, 2015Plastics News Executive Forum 2015

More Events