Posted August 4, 2015

 

CHARLOTTE, N.C. – Nonwovens producer AVINTIV, Inc., which changed its name from Polymer Group, Inc. (PGI) in June, announced that it has entered into a definitive agreement for Berry Plastics Group, Inc. to acquire AVINTIV from private equity funds managed by The Blackstone Group LP for approximately $2.45 billion in cash on a debt-free, cash-free basis.

 

Berry Plastics Group is a leading provider of value-added plastic consumer packaging and engineered materials delivering high-quality customized solutions to our customers with annual net sales of $5.0 billion in fiscal 2014. The company is based in Evansville, Ind.

 

“We are extremely excited to welcome the team and global capabilities of AVINTIV to the Berry organization,” said Jon Rich, chairman and CEO of Berry Plastics. “The combination of Berry Plastics and AVINTIV creates a global leader in plastics packaging and engineered specialty materials with enhanced technology, material and commercial capabilities to more broadly serve our customers.”

 

The proposed transaction, which is subject to customary closing conditions, is expected to close by the end of the year, the companies said in a release.

 

“AVINTIV has made tremendous progress advancing our mission to create a safer, cleaner and healthier world,” said Joel Hackney, AVINTIV’s CEO. “Joining Berry creates an ideal platform to expand into new adjacencies, strengthen our current capabilities and bring new innovations to our customers. Our employees’ hard work and dedication has enabled us to deliver consistent growth and margin expansion and will continue to play a critical role in the success of Berry.”

 

Berry Plastics has secured committed debt financing to fund the transaction and expects to utilize the strong, recession-resistant free cash flow of the combined business to reduce leverage following the transaction. Additionally, subject to market conditions, Berry will consider raising a modest amount of equity to result in a net debt to adjusted EBITDA ratio of approximately 5 times.

 

AVINTIV Inc. is one of the world’s leading developers, producers and marketers of specialty materials used in infection prevention, personal care, and high-performance solutions. With 23 locations in 14 countries, an employee base of more than 4,500 people and the broadest range of process technologies in the industry.

 

Source: AVINTIV