Berry Plastics planning IPO

Published: March 23, 2012 6:00 am ET

Related to this story

Topics Packaging, Blow Molding, Injection 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

Ohio molder sold to private equity firm

August 19, 2014 5:23 pm ET

Private equity firm TVV Capital of Nashville has acquired injection molder Design Molded Plastics Inc. for an undisclosed price.    More

Image

Germany's Bolta building $50 million plating plant in Alabama

August 19, 2014 2:21 pm ET

A German company is setting up a plastics chrome plating plant in Tuscaloosa, Ala.    More

Image

Report: Graham looking to sell Infiltrator

August 19, 2014 11:32 am ET

Private equity group Graham Partners Inc. reportedly is ready to sell septic tank maker Infiltrator Systems Inc. after holding the Old Saybrook, Conn....    More

Image

Cardia Bioplastics opening bag manufacturing plant in Brazil

August 19, 2014 9:31 am ET

Australia's Cardia Bioplastics Ltd. says the high demand for environmentally friendly bags has prompted it to set up a film and bag plant in São...    More

Image

Mauser opening joint venture in Mexico

August 18, 2014 1:27 pm ET

Mauser USA is teaming with Servicios Ambeintales Internacionales to open a new intermediate bulk container joint venture in Mexico that will include r...    More

Market Reports

Thermoformed Packaging 2014 Market Review & Outlook – North America

This in-depth report analyzes economic and market trends, legislative/regulatory activity impacting supply and demand, business opportunities and threats, materials pricing, manufacturing technology, as well as growth strategies being implemented by thermoformed packaging companies.

Learn more

Pipe, Profile & Tubing Extrusion in North America 2014

U.S. demand for extruded plastics is expected to grow by 3 percent in 2014, with PVC remaining the largest segment.

Plastic pipe will post the strongest gains through 2018, continuing to take market share from competing materials in a range of markets.

Our latest market report provides in-depth analysis of current trends and their financial impact on the pipe, profile and tubing extrusion industry in North America.

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

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