BWay Corp. has acquired Ropak Packaging, a division of Linpac Group Ltd., in a deal valued at about $265 million.
Ropak, based in Fountain Valley, Calif., injection molds rigid shipping containers for industrial and consumer applications.
Ropak has seven plants in North America, including a plastics recycling operation at its Springhill, Nova Scotia, site. It was No. 29 in the most recent Plastics News ranking of North American injection molders with estimated sales of $220 million.
BWay, of Atlanta, also makes rigid packaging. Its product offerings include pails, drums and tight-head containers made from plastic, metal and hybrid materials.
The acquisition gives BWay an opportunity to broaden its product portfolio and expand its reach; it's a “natural and exciting combination,” BWay President and CEO Kenneth Roessler said in a news release.
BWay itself has a new owner. Private equity firm Platinum Equity LLC of Los Angeles finalized its purchase of BWay last month, in a deal worth about $1.24 billion.
BWay immediately launched operational and merger and acquisition initiatives to strengthen and grow the company, the release said.
BWay has total sales of $1.2 billion. About 40 percent of the firm's 2011 net sales were in plastics.
The company has 11 plastics plants, and 22 overall, in North America. Plastics News rankings put it as North America's 13th largest injection molder and 26th largest blow molder.
This is the latest in a series of divestures for the Birmingham, England-based Linpac, following the company's debt restructuring in 2009.
In March, One Equity Partners of New York purchased Linpac Allibert, the company's returnable transit packaging arm. In 2011, the company sold five non-core business units to funds managed by Chamonix Private Equity.
Bway will acquire Ropak from Linpac Group via a stock purchase that will boost BWay's earnings power and should be a deleveraging event for the company, according to the release.