Packaging giant Reynolds Group Holdings Ltd. has put its closures business under review.
Closure Systems International Inc. is a major producer in plastic and aluminum closures with more than 30 manufacturing sites in more than 20 countries around the world. The business, commonly referred to as CSI, also supplies high-speed capping equipment and related technical support.
Reynolds revealed July 28 that it is strategically reviewing CSI; Evergreen Packaging Group, a large producer of carton packaging, paperboard and paper; and its SIG Combibloc business, a manufacturer of aseptic beverage cartons and related filling equipment.
Reynolds announced the reviews in a 6K filing with the U.S. Securities and Exchange Commission. In the filing Reynolds said the reviews “may result in a decision to sell some or all of those businesses, although no decision has been made at this time to do so.”
CSI is based in Indianapolis. Its North American manufacturing plants are in Salt Lake City; Olive Branch, Miss.; Kilgore, Texas; and Ensenada, Mexico. It is also partner in a joint venture in Sandston, Va. CSI supplies a wide range of markets, from food and beverages to pharmaceuticals to automotive fluids, and boasts it makes more than 95 billion closures annually. In 2012 it expanded its Kilgore plant.
CSI formerly was a division of Alcoa Inc. In 2008 Reynolds bought Alcoa's packaging and consumer businesses, including CSI. Reynolds is owned by Graeme Hart, reputedly New Zealand's richest man, and is headquartered in Auckland in that country.
Reynolds reported its closures business logged $169 million in adjusted earnings before interest, taxes, depreciation and amortization for the year ended Dec. 31. In the previous year the business's EBITDA was $187 million.
