BWAY Corporation reveals sale of plastic bottle business
BWAY Corporation, a North American supplier of general line rigid containers, said 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 1 gallon to 10 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, Indiana and Cedar City, Utah plants. These plants will continue to operate producing other blow molded and injected molded plastic products. Net proceeds from the sale will be used to reduce the Company’s term loan debt.