DELAWARE, OHIO — Greif Bros. Corp. is getting a $65 million price break.
The Delaware-based maker of industrial shipping containers recently announced it will be paying $555 million for the Van Leer Industrial Packaging division of Huhtamaki Van Leer Oyj of Espoo, Finland, according to news releases from Greif Bros. and Huhtamaki.
The public companies originally agreed to a sale price of $620 million when the deal was announced in October. Greif Bros. cited "additional due diligence" as the reason for the price reduction.
The sale is expected to close by the end of this month.
In addition to making steel and fiber containers, Greif Bros. blow molds 20-65 gallon containers at six U.S. and two Canadian plants. The company reported estimated blow molding sales of $80 million in 1999 and ranked 30th among North American blow molders in Plastics News' most recent survey.
Overall, the company reported 1999 sales of $892 million. The addition of Van Leer Industrial will almost double Greif's annual sales, based on Van Leer Industrial Packaging's 1999 sales of 921 million euros ($764 million).
Meanwhile, HVL said it will focus on consumer packaging. It expects 2001 sales of about $2.5 billion after the sale of the industrial packaging unit.