BWay buying Ropak Packaging from Linpac for $265 million

By Jessica Holbrook

Published: December 3, 2012 6:00 am ET

Related to this story

Topics Packaging Mergers & Acquisitions Injection Molding Blow Molding
Companies & Associations

ATLANTA (Dec. 3, 12:35 p.m. ET) — BWay Corp. has acquired Ropak Packaging, a division of Linpac Group Ltd., in a deal valued at about $265 million.

Ropak, based in Fountain Valley, Calif., injection molds rigid shipping containers for industrial and consumer applications.

Ropak has seven plants in North America, including a plastics recycling operation at its Springhill, Nova Scotia, facility. It was No. 29 in the most recent Plastics News ranking of North American injection molders with estimated sales of $220 million.

BWay, based in Atlanta, also makes rigid packaging. Its product offerings include pails, drums and tight-head containers made from plastic, metal and hybrid materials.

The acquisition gives BWay an opportunity to broaden its product portfolio and expand its reach; it’s a “natural and exciting combination,” said Kenneth Roessler, BWay’s president and CEO, in a news release.

BWay itself has a new owner. Private equity firm Platinum Equity LLC of Los Angeles finalized its purchase of BWay last month, in a deal worth approximately $1.24 billion.

BWay immediately launched operational and M&A initiatives to strengthen and grow the company, according to the release.

BWay has total sales of $1.2 billion. About 40 percent of the company’s 2011 net sales were in plastics.

The company has 11 plastics plants, and 22 overall, in North America. It is North America’s 13th largest injection molder and is No. 26 in PN’s ranking of North American blow molders.

This is the latest in a series of divestures for the Birmingham, England-based Linpac, following the company’s debt restructuring in 2009.

In March, One Equity Partners of New York purchased Linpac Allibert, the company’s returnable transit packaging arm. In 2011, the company sold five non-core business units to funds managed by Chamonix Private Equity.

Bway will acquire Ropak from Linpac Group via a stock purchase. The purchase will boost BWay’s earnings power and should be a deleveraging event for the company, according to the release.


Comments

BWay buying Ropak Packaging from Linpac for $265 million

By Jessica Holbrook

Published: December 3, 2012 6:00 am ET

Post Your Comments


Back to story


More stories

Image

Dow Chemical sees potential for PE growth in packaging

March 30, 2015 1:17 pm ET

The packaging market continues to provide growth for the polyethylene business of Dow Chemical Co. — which is a good thing, since the firm will ...    More

Image

Sipospack to build new flexible packaging plant in Hungary

March 30, 2015 9:38 am ET

Hungarian flexible packaging producer Sipospack Kft. is investing nearly 3 million euros ($3.2 million) in an expansion at a new site at Sóskút in...    More

Image

Flextronics launches global injection molding, tooling unit

March 26, 2015 4:29 pm ET

Flextronics International Ltd. (Booth S34125) is officially launching Precision Plastics, a global injection tooling and manufacturing unit, as a...    More

Image

Kautex showing off an extrusion blow molding machine at NPE

March 25, 2015 6:00 am ET

After 80 years in business, Kautex Maschinenbau GmbH officials know good old-fashioned word of mouth is often the best way to reach more customers.    More

Image

Fabri-Kal to expand its sustainable packaging with new Idaho plant

March 20, 2015 2:03 pm ET

Thermoformed packaging company Fabri-Kal Corp. plans to tap into Idaho's farming community to expand its sustainable packaging program.    More

Market Reports

Flexible Packaging Trends in North America

North America represents about 30 percent of the global consumption of flexible packaging. Annual growth in this region is forecast at 4 percent during the next 5 years.

For more insight on growth opportunities, drivers of growth and the outlook for 2015, download this report.

Learn more

Plastics Recycling Trends in North America

This report is a review and analysis of the North American Plastics Recycling Industry, including key trends and statistics based on 2013 performance. We examine market environment factors, regulatory issues, industry challenges, key drivers and emerging trends in post-consumer and post-industrial recycling.

Learn more

Plastics in Mexico - State of the Industry Report

This report analyzes the $20 billion plastics industry in Mexico including sales of machinery & equipment, resins and finished products.

Our analysts provide insight on business trends, foreign investment, top end markets and plastics processing activity. The report also provides important data on exports, production, employment and value of plastics products manufactured.

Learn more

Upcoming Plastics News Events

June 2, 2015 - June 3, 2015Plastics Financial Summit - Chicago 2015

September 16, 2015 - September 18, 2015Plastics Caps & Closures - September 2015

More Events