Rank Group Ltd. is selling off a large chunk of its plastics closures business but will retain a part of Closures Systems International in certain parts of the world.
Investment firm Cerberus Capital Management LP is acquiring CSI operations in North America, Costa Rica and Japan.
Rank, an investment group based in Australia, owns several well-known companies in the plastics industry including Graham Packaging Co. Inc., Presto, Hefty and Pactiv. Rank owns those companies through its Reynolds Group Holdings unit.
Cerberus, based in New York, currently also owns ABC Technologies Inc., a global plastic automobile parts manufacturer with locations in North America, South America, Asia and Europe.
CSI is the largest closure maker in North America, producing plastic and aluminum closures for bottles and containers. Last year the company sold more than 56 billion closures.
CSI was No. 24 in the most recent Plastics News ranking of North American injection molders, with estimated sales of $355 million in the region.
The two sides have struck a definitive agreement for the sale, which is expected to be finalized during the next two quarters as work now takes place to secure necessary regulatory approvals.
"Cerberus brings a wealth of financial, operating, and industry expertise to this exciting new partnership, and we are confident that together we will be able to drive CSI's next phase of growth," CSI CEO Floyd Needham said in a news release.
CSI serves the food, beverage and automotive markets and has a custom closures business. The company also makes capping machines.
The company has two manufacturing sites in Crawfordsville, Ind., and single locations in Kilgore, Texas; Salt Lake City; Saltillo, Mexico; Ensenada, Mexico; and Cartago, Costa Rica. A production location in Nogi, Japan, also is part of the deal.