Berry Plastics Corp. bolstered its aerosol overcaps and closures business with the Oct. 16 purchase of injection molder Knight Engineering and Plastics of Woodstock, Ill.
Berry bought the company through Berry's newly formed subsidiary, Knight Plastics Inc., for an undisclosed sum. The sale is free from debt. Knight Engineering, part of the Polymer Products division of Akzo Nobel UK plc, had sales of $23.8 million for the year ended March 31.
``This is a good strategic fit for Berry,'' Jim Kratochvil, executive vice president and chief financial officer, said in a telephone interview. ``It provides an extension into closures.''
This deal closely follows the firm's July acquisition of Norwich Injection Moulders Ltd. of Norwich, England. That plant had been Berry's only closure-molding facility. Knight Engineering adds that capability to Berry's U.S. operations.
Knight Engineering runs plants in Woodstock and Arlington Heights, Ill., and employs 173. The company operates 38 presses and molds polypropylene and polyethylene for the paint and coatings, personal-care, health-care and dental markets.
``The sale represents, in Akzo Nobel's eyes, the best future and best option for Knight Engineering and Plastics,'' said Steve Cassidy, former president of Knight Engineering.
The acquisition is Berry's ninth since 1992 and gives it a total of 11 plants. The company, headquartered in Evansville, Ind., manufactures plastic containers, aerosol overcaps, drink cups and houseware products. Its principal owners include affiliates of First Atlantic Capital, Chase Capital Partners, Aetna Life Insurance Co., CIT Group/Equity Investments Inc. and Berry management.
Akzo Nobel UK plc is a wholly owned subsidiary of Arnhem, Netherlands-based Akzo Nobel NV.