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 Packaging, Mergers & Acquisitions, 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

Austria's Greiner building a foothold in the US rigid packaging market

April 15, 2014 1:22 pm ET

Greiner Packaging International GmbH, one of Europe's largest makers of rigid plastic packaging, now wants to make its mark in the United States.    More

Krahn Chemie acquires Italy's Pietro Carini

April 15, 2014 11:20 am ET

Germany's Krahn Chemie GmbH has purchased a majority share in Italy-based speciality chemical company Pietro Carini SpA.    More

Image

RKW buys Hyplast, folds into RKW Agri

April 15, 2014 11:13 am ET

RKW SE, a Germany-based films and flexible packaging group, has announced it has acquired Belgium's Hyplast NV.    More

Polypipe shares rise on opening day of IPO

April 15, 2014 11:06 am ET

Polypipe Group plc saw its share prices rise during its first day of public trading on the London Stock Exchange, rising from 245 pence ($4.10) to...    More

Image

US equipment firm buys Negri Bossi

April 14, 2014 1:58 pm ET

Italian plastics equipment major Sacmi Group's offerings are getting a U.S. identity. Sacmi has sold its plastics division to Kingsbury Corp., a machi...    More

Market Reports

Thermoformed Packaging 2014 Market Review & Outlook North America

This in-depth report provides analysis and discussions of economic and political conditions, market trends, legislative/regulatory activity impacting supply and demand, business opportunities and threats, materials pricing, manufacturing technology, as well as strategies being implemented by thermoformed packaging companies. In addition, there are reviews of 25 leading thermoformers in the packaging segment, assessing their growth initiatives and performance metrics over 10 years.

Learn more

Automotive Market Review and Outlook 2014 The Americas

This 75-page report features in-depth analysis of the automotive industry for the Americas. It includes discussions of market trends, legislative/regulatory activity impacting production and threats as well as design strategies being implemented by the major automakers. Detailed charts and data tables outline North American automotive production over the last five years.

Learn more

Plastics Building & Construction Market Review and Outlook 2014 with MS Excel chart data

This report provides in-depth analysis of the plastic building and construction market for North America, including discussions of trends, opportunities, threats and the latest developments in construction trends that impact plastics processors.

Learn more

Upcoming Plastics News Events

May 6, 2014 - May 8, 2014Plastics in Medical Devices 2014

May 12, 2014 - May 12, 2014Plastics News Brazil Pharma Summit

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

February 3, 2015 - February 7, 2015Plastics News Executive Forum 2015

More Events