Dart Container buys Solo Cup
In a deal between two of North America’s largest thermoformers, Dart Container Corporation is purchasing Solo Cup Company for US$1 billion.
Both U.S.-based companies are in the consumer and foodservice disposable packaging business.
Illinois-based Solo Cup is being sold for US$315 million along with US$700 million in debt. Dart Container, headquartered in Mason, Mich., said it expects the deal to close by the third quarter of 2012, subject to regulatory approval. Dart expects to continue offering products under the Solo brand.
“Our acquisition of Solo will allow us to provide even greater value to our customers in the future,” said Dart Container CEO Robert C. Dart. “It will enable customers to purchase a wider range of products, made from a greater variety of materials with varying functional and environmental attributes — all from a single vendor. Both companies have an extensive history in the industry and will bring together valuable experience, traditions and complementary, high-quality products.”
Dart Container employs 7,600 workers at 20 production facilities worldwide. The company manufactures more than 600 products and has facilities throughout Canada, the U.S., Mexico, Argentina, Brazil, Australia and the United Kingdom. Solo Cup was established in 1936 and has a global presence with facilities in Canada (Toronto), the U.S., Europe, Mexico, and Panama.
“Solo has made great strides over the past several years in improving its operating efficiency, information systems and the caliber of the talent within the organization,” said Robert M. Korzenski, Solo Cup’s CEO. “Dart’s leadership team has shown a high level of respect for what Solo has accomplished and I believe we are putting the company in the right hands to succeed and grow going forward.”