BWay buying Ropak Packaging from Linpac
By Jessica Holbrook, Plastics News
Posted 5 December 2012
BWay has acquired Ropak Packaging, a division of Linpac Group, in a deal valued at about $265m.
Ropak, based in California, the US, injection moulds rigid shipping containers for industrial and consumer applications.
Ropak has seven plants in North America. It was No. 29 in the most recent Plastics News ranking of North American injection moulders with estimated sales of $220m (€168.1m).
BWay, based in 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,” said Kenneth Roessler, BWay’s president and CEO, in a news release.
BWay itself has a new owner. Private equity firm Platinum Equity of Los Angeles finalised its purchase of BWay last month, in a deal worth approximately $1.24bn (€978m).
BWay immediately launched operational and M&A initiatives to strengthen and grow the company, according to the release.
BWay has total sales of $1.2bn (€917m). About 40% of the company’s 2011 net sales were in plastics.
The company has 11 plastics plants, and 22 overall, in North America. It is North America’s 13th largest injection moulder and is No. 26 in PN’s ranking of North American blow moulders.
This is the latest in a series of divestures for the UK-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. The purchase will boost BWay’s earnings power and should be a deleveraging event for the company, according to the release.
Tell us what you think