Berry Global Group to Acquire Clopay
- Published: January 09, 2018
EVANSVILLE, IN | The Flexographic Technical Association (FTA) reports that Berry Global Group has entered into a definitive agreement to acquire the Clopay Plastic Products Company, a subsidiary of Griffon Corporation, for $475 million in cash on a debt-free, cash-free basis. Berry’s products include engineered materials, nonwoven specialty materials, and consumer packaging.
Clopay is a global supplier of printed breathable films as well as an innovator in the development of elastic films and laminates with product offerings uniquely designed for applications used in a number of markets including hygiene, healthcare, construction, and industrial protective apparel. Clopay has nearly 1,500 employees with a footprint serving markets across the globe with locations in the US, Germany, Brazil, and China. Clopay delivered $461 million in sales and $53 million in operating EBITDA for its fiscal year ended September 30, 2017.
“The proposed acquisition of Clopay is directly aligned with our fundamental strategic initiatives,” says Tom Salmon, CEO of Berry. “We are extremely excited with what Clopay’s global capabilities and unique technology platform will add to our organization. The combination of Clopay with Berry’s Health, Hygiene, and Specialties division broadens our position within the faster growing health and hygiene markets. Clopay will bring Berry new capabilities in the production of technical films, where they are a known innovator with patent protected breathable hygiene films.”
According to Berry, benefits of the transaction include the following:
- “Together we will be able to optimize complementary production capacities, reduce material and conversion costs, and better serve customers from an expanded global footprint with a portfolio of products that is one of the most comprehensive in the industry.”
- “The transaction increases Berry’s position within the faster growing health and hygiene markets using innovative patent protected technologies.”
- “Berry expects to realize cost synergies in line with previous acquisitions of a similar nature.”
The transaction is expected to be completed in early 2018, subject to customary closing conditions, including applicable regulatory approvals. Berry intends to fund the acquisition with existing liquidity or additional debt offering.
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