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Berry Plastics Group Inc, one of the leading providers of value-added plastic consumer packaging and engineered materials, on July 31, 2015 signed an agreement to acquire Avintiv Inc from private equity funds managed by The Blackstone Group LP for approximately $2.45 billion in cash on a debt-free, cash-free basis.
Avintiv Inc is one of the world’s leading developers, producers, and marketers of specialty materials used in infection prevention, personal care, and high-performance solutions. With 23 locations in 14 countries, an employee base of over 4,500 people, and the broadest range of process technologies in the industry, Avintiv’s strategically located manufacturing facilities position it as a global supplier to many of the same leading consumer and industrial product manufacturers that Berry Plastics supplies. For the twelve-month period ended March 2015, Avintiv generated pro forma revenues and adjusted EBITDA of $2.1 billion and $303 million, respectively. Additionally, Berry Plastics expects to realise approximately $50 million in annual cost synergies.
“We are extremely excited to welcome the team and global capabilities of Avintiv to the Berry organisation. The combination of Berry Plastics and Avintiv creates a global leader in plastics packaging and engineered specialty materials with enhanced technology, material, and commercial capabilities to more broadly serve our customers,” said Jon Rich, chairman and CEO of Berry Plastics.
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Joel Hackney, chief executive officer, Avintiv, commented, “Avintiv has made tremendous progress advancing our mission to create a safer, cleaner, and healthier world. Joining Berry creates an ideal platform to expand into new adjacencies, strengthen our current capabilities, and bring new innovations to our customers.”
The proposed transaction, which is subject to customary closing conditions, is expected to close by the end of calendar year 2015.
