Berry Plastics Group has entered into an agreement to acquire Avintiv, a portfolio company of Blackstone, for approximately $2.5 billion in cash on a debt-free and cash-free basis. Avintiv, formerly known as Polymer Group, was acquired by Blackstone in January 2011. The sale of Avintiv to Berry is expected to close by the end of 2015. The valuation multiple for this transaction is just over 8.3x EBITDA.
Avintiv is a developer, producer, and marketer of specialty materials used in infection prevention, personal care, and specialty applications. The company’s products include:
- Infection Prevention: disinfectant wipes, surgical gowns and drapes, face masks, and medical filtration products.
- Personal Care: disposable baby diapers, feminine hygiene products, adult incontinence products, baby wipes, facial care wipes and fabric-softening dryer sheets.
- Specialty applications: protective house wrap, industrial cable wrap, and industrial wipes.
Avintiv has annual revenues of approximately $2.1 billion and EBITDA of $300 million. The company has 23 manufacturing locations in 14 countries and an employee base of over 4,500 people. Avintiv is headquartered in Charlotte (www.avintiv.com).
Berry Plastics Group (NYSE: BERY) is a provider of plastic consumer packaging and engineered materials with annual sales of about $5 billion. The company is headquartered in Evansville, IN (www.berryplastics.com).
“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 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.”
Berry’s financial advisers on the deal were Credit Suisse Group and Barclays and the company has secured committed debt financing to fund the transaction. Avintiv and Blackstone’s financial advisers were Citigroup and Bank of America Merrill Lynch.
Blackstone is one of the world’s largest investment and advisory firms. The firm’s alternative asset management businesses include the management of private equity funds, real estate funds, hedge fund solutions, credit-focused funds and closed-end funds. Blackstone also provides various financial advisory services, including financial and strategic advisory, restructuring and reorganization advisory and fund placement services. Blackstone is headquartered in New York (www.blackstone.com).
© 2015 PEPD • Private Equity’s Leading News Magazine • 7-31-15
