WASHINGTON:

The Pak Banker - - COMPANIES/BOSS -

Berry Plas­tics Group Inc., a U.S. maker of con­sumer pack­ag­ing, agreed to buy Av­in­tiv Inc. for about $2.45 bil­lion in cash to add a range of spe­cialty ma­te­ri­als used in in­fec­tion preven­tion and per­sonal care. Berry is ac­quir­ing Av­in­tiv from pri­vate-eq­uity funds man­aged by Blackstone Group LP, it said Fri­day in a state­ment

The takeover will lead to $50 mil­lion of an­nual cost sav­ings and is ex­pected to close by the year-end, Berry said in the state­ment. It is Evansville, In­di­ana-based Berry's largest ac­qui­si­tion, ac­cord­ing to data com­piled by Bloomberg. Berry rose 4.9 per­cent to $35 at 8:33 a.m. be­fore the start of reg­u­lar trad­ing in New York. The com­pany said it has ob­tained com­mit­ted debt fi­nanc­ing for the deal, and that it may also sell some eq­uity, depend­ing on mar­ket con­di­tions.

Av­in­tiv op­er­ates at 23 sites in 14 coun­tries and has more than 4,500 em­ploy­ees. On a pro-forma ba­sis, it had sales of $2.1 bil­lion and earn­ings be­fore in­ter­est, taxes, de­pre­ci­a­tion and amor­ti­za­tion of $303 mil­lion in the year ended March. Berry's fi­nan­cial ad­vis­ers on the deal were Credit Suisse Group AG and Bar­clays Plc, while Bryan Cave LLP was its le­gal ad­viser. Av­in­tiv and Blackstone's fi­nan­cial ad­vis­ers were Cit­i­group Inc. and Bank of Amer­ica Mer­rill Lynch and their le­gal ad­viser was Simp­son Thatcher & Bartlett LLP.

Newspapers in English

Newspapers from Pakistan

© PressReader. All rights reserved.