Clopay Plastic Products Inc.
Clopay Plastic Products Co. Inc. is a maker of breathable movies, elastic movies and laminates.
Griffon Corp. has discovered a purchaser for its Clopay Plastic Products Co. Inc. movie making subsidiary, and it is a acquainted title.
Berry Global Group Inc. has emerged because the winner for the maker of breathable movies, elastic movies and laminates, lower than three months after Griffon put the division in play.
Berry of Evansville, Ind., is paying $475 million in money for Clopay Plastic, which incorporates manufacturing operations in Nashville, Tenn.; Augusta, Ky.; Aschersleben and Dombuhl, Germany; São Paulo and Suzhou, China.
It was solely in early September that Griffon mentioned it could discover the sale of Clopay Plastic after indicating it obtained unsolicited curiosity within the operations from a number of events.
“While it’s an excellent business, we just don’t have the scale that Berry will be able to provide for that business, so this is one of those opportunities where we see this as incredibly opportunistic for us and we think it’s a fabulous opportunity for Berry to be able to take the company and bring it to a new level,” Griffon CEO Ronald Kramer, mentioned on a Nov. 16 convention name.
Griffon, based mostly in New York, has different companies together with Clopay storage doorways, Closetmaid organizing techniques and Ames instruments. The firm additionally operates Telephonics, an digital data and communications techniques agency.
With the acquisition, Berry takes one other mbadive swing within the mergers and acquisition market, usually, and the movie market particularly.
The Clopay Plastic deal follows acquisition of AEP Industries Inc., a versatile packaging movies maker, in a transaction that closed early this 12 months. That transfer introduced Berry 14 manufacturing websites in each the United States and Canada.
“Clopay broadens our presence as a global supplier to many of the leading consumer and industrial product manufacturers which Berry already supplies with other products,” Berry CEO Tom Salmon mentioned on a separate Nov. 16 convention name.
“Clopay will give us new capabilities in the production of technical films where Clopay is a known innovator with patent protected breathable hygiene products,” he continued.
Key Clopay markets embody diapers, grownup incontinence, female care, medical robes, pet pads, home wrap, protecting clothes and surgical drapes, Berry mentioned.
“Together will be able to optimize complementary production capacities, share technical resources, reduce material and converting costs and better serve our domestic and international customers from an expanded footprint,” Salmon mentioned.
Clopay Plastics had $461 million in gross sales and $53 million in earnings earlier than curiosity, taxes, depreciation and amortization for the fiscal 12 months ended Sept. 30. Berry expects to realize $20 million in price financial savings per 12 months.
The deal, which requires regulatory approval, is anticipated to shut early subsequent 12 months.
Salmon, in the meantime, additionally signaled Berry expects extra acquisitions sooner or later. “Our pipeline continues to be very robust with global opportunities.”