Berry Global Group has agreed to the $475 million acquisition of Griffon Corporation’s film-making subsidiary Clopay Plastic Products Company. The deal marks Berry’s third acquisition this year following its purchases of AEP Industries and Adchem Corporation.
Clopay, a global supplier of breathable films, elastic films and laminates, operates across a variety of market segments including hygiene, healthcare, construction and industrial protective apparel.
Clopay has approximately 1,500 employees at its locations in the US, Germany, Brazil, and China, and delivered $461m in sales and $53m in operating EBITDA for its fiscal year ended 30 September.
Tom Salmon, chief executive of Berry, commented: “The proposed acquisition of Clopay is directly aligned with our fundamental strategic initiatives. 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.”
According to Berry, its acquisition of Clopay will enable the company to better utilise 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’.
Berry officials said they expect the acquisition to bring roughly $20m in ‘clearly identifiable cost synergies’ over the next two years.
Berry also released its fourth quarter results this week and posted net sales of $1.9 billion and EBITDA of $350m. Additionally, its net debt to adjusted EBITDA ratio of 3.8 per cent is the lowest in its history as a public company.