Berry Global Group Inc. has entered into a definitive agreement to acquire Clopay Plastic Products Company Inc., a subsidiary of Griffon Corporation. Clopay is a global supplier of printed breathable films as well as an innovator in the development of elastic films and laminates with product offerings designed for applications used in markets including; hygiene, healthcare, construction and industrial protective apparel.
Clopay has nearly 1,500 employees with a footprint serving markets across the globe with locations in the U.S., Germany, Brazil and China. Clopay delivered $461 million in sales and $53 million in operating EBITDA for its fiscal year ended September 30, 2017.
“The proposed acquisition of Clopay is directly aligned with our fundamental strategic initiatives,” says Tom Salmon, CEO of Berry. “We are extremely excited with what Clopay’s global capabilities and unique technology platform will add to our organization. The combination of Clopay with Berry’s Health, Hygiene and Specialties division broadens our position within the faster growing health and hygiene markets.
Clopay will bring Berry new capabilities in the production of technical films, where they are a known innovator with patent protected breathable hygiene films.”
Benefits of the Transaction
- Complementary products. Together we will be able to optimize complementary production capacities, reduce material and conversion costs, and better serve customers from an expanded global footprint with a portfolio of products that is one of the most comprehensive in the industry.
- Faster growing markets. Increases Berry’s position within the faster growing health and hygiene markets using innovative patent protected technologies
- Significant, clearly identifiable cost synergies. Berry expects to realize cost synergies in line with previous Berry acquisitions of a similar nature.
- Approvals, Closing and Funding Considerations
The transaction is expected to be completed in early 2018, subject to customary closing conditions, including applicable regulatory approvals.