BWAY Corporation Announces Sale of Plastic Bottle Business
ATLANTA, March 8, 2012 /PRNewswire/ — BWAY Corporation, a leading North American supplier of general line rigid containers, today announced that it has signed an agreement to sell the Company’s blow molded plastic bottle business to Ring Container Technologies, Inc. The business includes a variety of plastic bottles generally ranging in size from one gallon to ten liters primarily serving the agricultural and other chemicals markets, and various other end-use markets. BWAY Corporation had sales from this business of approximately $21.0 million in fiscal 2011.
Commenting on the pending sale, Ken Roessler, BWAY’s President and Chief Executive Officer stated that, “BWAY’s strategy is focused on building leading positions in markets we choose to serve. While blow molded bottles represent a good business, we are simply not a meaningful market participant, and we do not believe that substantial growth in this segment is practical for BWAY. This sale allows us to focus on the Company’s blow molded tighthead container business, a core market where we hold the leading market position. Our focus will include blow molded tighthead container investments in product development, new container and manufacturing equipment technologies, and capacity.”
The transaction is structured as an asset sale and includes certain equipment currently located at the Company’s Indianapolis, IN and Cedar City, UT plants. These plants will continue to operate producing other blow molded and injected molded plastic products. The transaction is expected to close within the next 30 days, at which time BWAY and Ring will begin an orderly transition of the business. Net proceeds from the sale will be used to reduce the Company’s term loan debt.
About BWAY Corporation
BWAY Corporation is a leading North American supplier of general line rigid containers. The Company operates 22 plants throughout the United States and Canada serving industry leading customers on a national basis.
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SOURCE BWAY Corporation