Bemis to divest 2 plants after Alcan deal
NEENAH, WIS. Bemis Co. Inc. of Neenah has received approval from the U.S. District Court for the District of Columbia for its $1.2 billion acquisition of the Food Americas operations of Alcan Packaging.
Bemis will be required to divest certain Food Americas packaging assets in the U.S. Those assets represent about $100 million in annual sales and include two undisclosed facilities that produce packaging for meat and cheese.
Food Americas reported 2009 sales of about $1.4 billion. It runs 23 plants in North America, South America and New Zealand.
Bemis sought to buy Food Americas in 2009, but the deal was held up when the Department of Justice expressed concern the potential impact on competition.
Bemis is a major supplier of flexible packaging and pressure-sensitive materials, with 2009 net sales of $3.5 billion.
Berlin Packaging to purchase All-Pak
CHICAGO Chicago-based packaging distributor Berlin Packaging LLC is expanding its product line and geographic reach with the planned acquisition of Pittsburgh-based All-Pak Inc.
Terms were not disclosed. The combined companies will have annual sales approaching $500 million, Berlin said.
Berlin Packaging, founded in 1898, claims to be one of North America's largest stocking suppliers of glass, plastic and metal containers and closures. Private equity group Investcorp of London acquired a majority stake in Berlin in 2007.
All-Pak was formed in 1958 when Ken Simon and Bill Ellinger, owners of Allied Can, bought DO Cunningham Glass Co., which in turn was founded in 1845 in Pittsburgh.
The combined company will have more than 40 sales offices and warehouse locations across the U.S., including Puerto Rico and an expanded footprint in the eastern U.S.
Gatorade plant closing will cut 100 jobs
PURCHASE, N.Y. PepsiCo Inc. of Purchase is closing its largest Gatorade bottling plant, a facility in Pryor, Okla., that it spent $180 million to build in 2006 and 2007.
The closing will happen over the next three months and affect about 100 employees, company officials said in a Feb. 22 e-mail.
This was a difficult business decision, which was made to keep Gatorade's overall manufacturing capacity in line with current market demands, Pepsi regional spokesman Pat Burke said.
The 1.4 million-square-foot plant and distribution center served a 13-state region. There are eight other Gatorade bottling plants in the U.S.
Toy maker Mega Brands reorganizing
MONTREAL Toys and art supplies producer Mega Brands Inc. has filed a proceeding to win U.S. recognition for its recapitalization plan in Canada.
Mega Brands of Montreal filed Feb. 19 under Chapter 15 of the U.S. Bankruptcy Code to obtain acknowledgement and enforcement in the U.S. of its Canadian proceeding.
The firm, best known for its plastic construction blocks, announced Jan. 14 its plan to recapitalize. It expects to reduce debt from about US$430 million to US$131 million. Annual interest expenses should fall from about US$43 million in 2009 to about US$13 million, the company estimates.
Mega Brands said its suppliers and customers will not be affected by the recapitalization plan, which will eliminate all financial covenants. The plan includes injection of new capital through a C$100 million (US$95.7 million) deal led by GMP Securities and a US$121 million private placement to Fairfax Financial Holdings Ltd., Trimark mutual funds and certain Mega Brands executives. Shareholders are to vote on the plan March 16.
Report: Jackson Plastics closing in Ky.
NICHOLASVILLE, KY. Local news is reporting auto supplier Jackson Plastics Inc. is shutting down in Nicholasville.
The injection molder, a Toyota supplier, was founded by entrepreneur Henry Jackson in 1994. Jackson did not return calls requesting comment. The state of Kentucky said it has not yet received any official notice, but local media cited workers who said Nicholas told them Feb. 23 that the plant will close.
The plant, slated to close by the end of April, employs about 100. It listed $8.1 million in annual sales for 2008.
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