Waddington set to buy Canadian thermoformer Par-Pak

By Michael Lauzon
Correspondent

Published: May 16, 2013 2:08 pm ET
Updated: May 16, 2013 2:11 pm ET

Related to this story

Topics Mergers & Acquisitions, Packaging, Thermoforming

BRAMPTON, ONTARIO -- Canada-based thermoformed packaging company Par-Pak Ltd. is slated to be bought by Waddington North America Inc., a major plastic tableware producer.

Moody’s Investors Services reported that Waddinton’s parent company, WNA Holdings Inc. of Covington, Ky., plans to take out a line of credit for the purposes of buying Par-Pak and to refinance debt obligations. Moody’s assigned a B1 rating for the first lien credit of $500 million and a Caa1 rating for the second, $150 million lien credit for WNA.

Waddington is based in Covington and was acquired by Olympus Partners of Stamford, Conn., in November. Waddington’s products include disposable plastic plates, cups and cutlery for catering, food service and consumer markets.

A news report indicated Waddington will pay more than $300 million for Par-Pak, a private firm based in Brampton, Ontario, with facilities in Houston, Texas, and Milton Keyes, England. Par-Pak reported North American sales of US$108 million for the year ended June 30, 2011, according to Plastics News’ thermoformers ranking. Total sales were US$166 million for the 522-employee company. It processes polystyrene and PET, largely for bakery customers.

Spokespersons for Waddington and Olympus could not be reached. Par-Pak’s management said it had no comment on the proposed deal.

Moody’s said WNA sales for the year ended Dec. 31, 2012 would be about $566 million pro forma the impact of the Par-Pak acquisition.

“We view the Par-Pak acquisition a credit neutral event overall,” stated Moody’s lead analyst John Zhao in a news release commenting on the Waddington deal. “While financial leverage will increase initially, we expect that the company will generate solid free cash flow to pay down debt and reduce its leverage steadily in the next 12-18 months.”

Last fall Waddington bought Eco-Products Inc., a Boulder, Colo., producer of environmentally sensitive food service products. Waddington also owns Polar Plastic Ltd., a disposable food service products company based in Montreal.


Comments

Waddington set to buy Canadian thermoformer Par-Pak

By Michael Lauzon
Correspondent

Published: May 16, 2013 2:08 pm ET
Updated: May 16, 2013 2:11 pm ET

Post Your Comments


Back to story


More stories

Image

Deal adds U.K. plant to DelStar

November 25, 2014 12:47 pm ET

Schweitzer-Mauduit International Inc. (SWM) is acquiring certain assets from the advanced wound management division of London-based Smith & Nephew...    More

Image

Onex buying packaging group SIG Combibloc

November 24, 2014 9:05 am ET

ex Corp. will buy SIG Combibloc Group, the Switzerland-based manufacturer of aseptic carton packaging and plastics closures from New Zealand's Rank...    More

Image

3D Systems buying Cimatron

November 24, 2014 1:46 pm ET

3D Systems Corp. is buying Cimatron Ltd., an Israel-based company that makes integrated computer-assisted design and manufacturing software, for $97...    More

Image

PET film maker Evertis expanding production in Mexico, Brazil, Portugal

November 20, 2014 2:52 pm ET

Evertis, a PET film maker, is expanding production at plants in Mexico, Brazil and Portugal, the company said.    More

Image

Coveris changes culture, eyes IPO

November 20, 2014 1:40 pm ET

CEO Gary Masse has a simple message, and some new math, for everyone at Coveris Holdings Corp. Get on board or get out of the way.    More

Market Reports

Plastics in Brazil - State of the Industry Report

This in-depth report examines the Brazilian plastics industry from a historical and geographical context. Our analysts provide insight on economic trends and forecasts, growing manufacturing sectors that utilize plastics, private investment opportunities, market environment challenges, and innovations in R&D.

Data tables and charts on producer prices, trade, plastics production and end market indicators is also included.

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

Injection Molders Market Report & Ranking 2014

This special package contains our 132-page 2014 Market Report on the Injection Molding segment and our exclusive 2014 RANKINGS database of 500+ Injection Molders for a discounted package price.

Learn more

Upcoming Plastics News Events

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

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

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

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

October 27, 2015 - October 29, 2015Plastics Financial Summit - New York - 2015

More Events