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Private equity firm buying Bway for $1.24 billion

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October 3, 2012

ATLANTA (Oct. 3, 12:05 p.m. ET) — BWay Parent Co. Inc., a rigid packaging supplier that operates through its subsidiary BWay Corp., has been acquired by private equity firm Platinum Equity LLC in a deal worth $1.24 billion.

Platinum Equity will acquire BWay Parent Co. from funds managed by Madison Dearborn Partners LLC via a merger. BWay’s senior executives, along with a number of other employees, will invest alongside Platinum.

The deal is being financed through a combination of equity and debt financing, and is expected to close in the fourth quarter of 2012.

Madison Dearborn acquired BWay in 2010.

Atlanta-based BWay Corp. makes rigid packaging — including pails, drums and tight head containers — from plastic, metal and hybrid materials. It operates 22 plants in the U.S. and Canada.

Earlier this year, BWay sold its blow molded bottle business to Oakland, Tenn.-based Ring Container Technologies Inc.

BWay Corp. reported sales of $1 billion in 2011. Plastics represented about 40 percent of the company’s net sales in 2011, according to SEC filings.