Can maker BWAY to be acquired in $1.24 billion deal
BWAY Parent Company has agreed to be acquired by private equity firm Platinum Equity in a deal worth $1.24 billion.
The company is a leading North American supplier of rigid plastic and metal containers through its primary operating subsidiary BWAY Corporation. It operates 22 plants throughout the US and Canada.
BWAY Corporation announced that it has entered into a definitive agreement to be acquired by an affiliate of Platinum Equity.
“We are very excited about this transaction with Platinum Equity. Platinum brings to BWAY a strong operational and strategic focus and a tremendous track record of value creation that we are convinced will help us achieve new levels of success,” says Ken Roessler (pictured), BWAY’s president and chief executive officer. “We look forward to taking the next step in the evolution of our company.”
Roessler says business will continue as usual as all parties work toward a prompt closing of the transaction. BWAY expects the transaction to close in the fourth quarter of 2012.
“BWAY is a world class packaging business with strong customer relationships and a proven management team,” notes Louis Samson, the partner at Platinum Equity whose team led the acquisition. “We are excited to bring our operational capabilities to bear and to partner with the company’s management team to build on BWAY’s strong fundamentals.”
Under the terms of the agreement, Platinum Equity will acquire BWAY Parent Company from funds managed by Madison Dearborn Partners, via a merger.
Senior executives of the company and a number of other employees will invest in the transaction alongside Platinum.
The transaction will be financed through a combination of equity contributed by Platinum Equity along with certain members of management, and committed debt financing provided by Bank of America, Merrill Lynch and Deutsche Bank.
