EVANSVILLE, Ind.--(EON: Enhanced Online News)--Today Berry Plastics Group, Inc. (NYSE: BERY), a leading manufacturer of plastic packaging and engineered materials, announced that it has finalized two transactions in support of the Company’s strategic initiatives. On September 29, 2013, the Company completed the acquisition of Graphic Packaging’s Flexible Plastics and Film business and, on September 27, the Company completed the sale of its Kits and Catering business. The terms of the transactions were not disclosed.
“We are extremely pleased to welcome the Graphic Packaging Flexible Films employees to the Berry Plastics family.”
Graphic Packaging’s Flexible Plastics and Film business generated approximately $100 million in revenue for the twelve months ended June 2013. The Company expects the acquisition to be deleveraging after achieving synergies.
The Graphic Packaging purchase includes facilities located in Des Moines, Iowa; Milwaukee, Wisconsin; and Schaumburg, Illinois. Approximately 270 individuals are employed at these facilities where wraps, films, pouches, and bags are produced for the food, medical, industrial, personal care, and pet food markets. The newly acquired facilities will be operated in Berry Plastics’ Flexible Packaging Division.
Berry Plastics’ Flexible Packaging Division produces high barrier, multilayer film products as well as finished flexible packages such as printed bags and pouches. The largest end uses for the Company’s flexible products are consumer-oriented end markets such as food and beverage, medical, and personal care.
“As a growing number of companies explore flexible packaging for their products, it is essential that we pursue initiatives which will allow us to meet the increasing demand in this market segment. The acquisition of Graphic Packaging’s business is in line with our corporate strategy and will allow us to further strengthen our capabilities and capacity, while maintaining an on-going solid customer relationship with Graphic Packaging,” said Jon Rich, Chairman and CEO of Berry Plastics. “We are extremely pleased to welcome the Graphic Packaging Flexible Films employees to the Berry Plastics family.”
Berry Plastics completed the sale of its Kits and Catering businesses to WNA a division of the Waddington Group Inc. June LTM sales associated with the Kits and Catering businesses were approximately $26 million. WNA is a leading manufacturer of disposable dinnerware, serving ware, cutlery and custom packaging products.
Effective on the transaction date, all employees located in Berry Plastics’ Bremen, Georgia, facility and the commercial employees supporting this business became employees of WNA.
Berry Plastics also announced the related closure of its Coon Rapids, Minnesota, facility. As part of the sale of Berry Plastics’ Kits and Catering businesses, WNA purchased the equipment and inventory at Coon Rapids. Over the next several months WNA will transition these assets to other WNA locations. During this period, Berry Plastics will continue to operate the facility. It is anticipated that the full closure of the Coon Rapids facility will occur no later than December 31, 2013.
“At Berry Plastics, we continually evaluate our product and business portfolio to ensure that we are dedicating resources to those product lines that are the best strategic fit for our Company. During this process, it was determined that our Kits and Catering businesses would be best affiliated with a company, such as WNA, that is a leader within this market,” said Rich.
About Berry Plastics
Berry Plastics Group, Inc. is a leading provider of value-added plastic consumer packaging and engineered materials delivering high-quality customized solutions to our customers with annual net sales of $4.8 billion in fiscal 2012. With world headquarters in Evansville, Indiana, the Company’s common stock is listed on the New York Stock Exchange under the ticker symbol BERY. For additional information, visit the Company’s website at www.berryplastics.com.
Certain statements and information included in this release may constitute "forward looking statements" within the meaning of the Federal Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance, or achievements of Berry Plastics to be materially different from any future results, performance, or achievements expressed or implied in such forward looking statements. Additional discussion of factors that could cause actual results to differ materially from management’s projections, forecasts, estimates and expectations is contained in the companies' SEC filings. The companies do not undertake any obligation to update any forward-looking statements, or to make any other forward-looking statements, whether as a result of new information, future events or otherwise.