Berry Plastics Corp. continues to expand the plastic bottle, lid, cap and closure side of its business with the planned acquisition of Captive Plastics Inc. and the recent purchase of Mac Closures Inc.
Evansville, Ind.-based Berry announced both deals within days of each other, on Dec. 19 and Dec. 21. The larger of the two came on Dec. 21, when Berry revealed that it had entered an agreement to buy the stock of Captive Holdings Inc., the parent of Captive Plastics Inc., from First Atlantic Capital Ltd. of New York.
Berry will pay about $500 million in cash for Captive, and the deal is scheduled to close in the first quarter of 2008.
Captive blow molds bottles and injection molds closures for the food, health-care, spirits, and personal-care markets. It is headquartered in Piscataway, N.J., and operates 13 plants in the United States.
``The acquisition of Captive is another step in our quest to be a total solution provider of plastic packaging, with the Captive product line significantly enhancing our abilities to better serve our customers,'' said Ira Boots, Berry Plastics chairman and chief executive officer, in a news release.
Coincidently, First Atlantic had owned Berry Plastics in the late 1990s before selling it in May 2002. During First Atlantic's tenure, Berry's sales grew from $57 million to $462 million.
First Atlantic bought Captive Plastics in 2004. Since then, Captive has acquired three companies, including Grafco PET Packaging Technologies, which it purchased in October 2006.
``We are very pleased with the success of Captive over the past three years and believe the business is well positioned for future growth as part of Berry Plastics,'' First Atlantic Chairman Robert Buaron said in a news release.
Berry Plastics had announced just a few days earlier, on Dec. 19, that it had acquired Mac Closures Inc. of Waterloo, Quebec. Mac Closures makes stock and custom products for U.S. and Canadian private- and national-brand owners, distributors and other packaging suppliers. The company, which was founded in 1932, has a plant in Oakville, Ontario.
``The acquisition of Mac Closures is a continuation of Berry's strategic plan to expand our North American position by combining with industry-leading companies to provide a full product offering of plastic packaging to our customers,'' Boots said.
Berry Plastics acquired all of Mac Closures' stock for undisclosed terms. The Canadian company's products are used in packaging for pharmaceuticals, household chemicals, personal-care products and industrial chemicals.
``I am pleased to join an industry leader with values and a vision that we share and that has driven Mac to its current position in the market,'' said Mac Closures President and CEO Gilles Decelles.
Berry Plastics employs about 12,700 at 56 plants around the world. It is a portfolio company of Apollo Management LP and Graham Partners.
Plastics News correspondent Michael Lauzon contributed to this story.