North American rigid containers supplier BWAY has entered into a definitive agreement to acquire Ropak Packaging from the Linpac Group in a deal valued at about $265m.
BWAY president and chief executive officer Kenneth Roessler said integration of Ropak into the company's business is set to create a better opportunity to broaden its product portfolio as well as expand its reach.
"The transaction is a natural and exciting combination," Roessler said.
Under the terms of the agreement, Ropak will be acquired by BWAY from Linpac through a stock purchase. The transaction is subject to customary closing conditions and will be financed by increasing the size of BWAY's current term B loan.
BWAY, which operates 22 plants throughout the US and Canada, was acquired by Platinum Equity in November 2012.
Canada-based Ropak produces rigid, plastic shipping containers and serves industries including consumer goods, food processing, construction, dairy, petroleum and others.
