Graham Packaging sold to New Zealand firm for US$1.68 billion
Graham Packaging Company Inc. is being purchased by New Zealand's Reynolds Group Holdings Ltd. for US$1.68 billion, beating out a previous offer by rival bidder Silgan Holdings Inc.
June 17, 2011 by Canadian Plastics
Reynolds, a unit of Rank Group Ltd. – a business entity controlled by New Zealand billionaire Graeme Hart – will pay Graham Packaging’s investors US$25.50 a share, York, Pa.-based Graham Packaging said in a statement.
One of North America’s leading blow molded rigid plastic-container businesses, Graham Packaging has customers that include PepsiCo Inc., maker of Gatorade and Tropicana beverages. The company has Canadian headquarters in Mississauga, Ont.
Including net debt, the overall deal is said by Graham Packaging to be worth approximately US$4.5 billion.
Silgan, based in Stamford, Conn., said in a separate statement that is it entitled to a termination fee of US$39.5 million for the cancellation of its April 13 buyout agreement that was worth US$19.56 per share.