Graham Packaging Co. Inc. said its subsidiary Graham Packaging Co. LP expects to acquire China Roots Packaging Pte. Ltd., a plastic container manufacturer in Guangzhou, China.
In an April 5 news release, Graham said it has signed an agreement to acquire from Malaysia-based conglomerate PCCS Group Berhad all of the shares of Roots Investment Holding Private Ltd., which will be the sole equity holder of China Roots.
China Roots makes containers and closures for food, health-care and petrochemical products a its plant in Guangzhou.
The deal is expected to close during the second quarter of 2010.
The purchase of China Roots will be the first operation for Graham in China, Graham said. The purchase will open a new door for our company, CEO Mark Burgess said in the release. China is undeniably a major market, and the opportunity to participate in its growth is very exciting for us.
According to China Roots' Web site, the Guangzhou plant opened in August 2005 at a cost of about $16 million.
York-based Graham is a global leader in customized blow molded plastic containers for the food and beverage, household, personal-care and automotive lubricants markets. The company produces more than 20 billion container units annually at 80 plants in the Americas and Europe.
Graham is a leading U.S. supplier of plastic containers for juice, sports and yogurt drinks, as well as containers for beer, salad dressing, cleaning products and motor oil.
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