Platinum Equity has agreed to sell BWAY Corp. to Stone Canyon Industries for $2.4 billion. BWAY is a manufacturer of rigid metal and plastic containers. Platinum acquired BWAY in December 2012 from Madison Dearborn Partners for $1.2 billion and in January 2013 completed the add-on acquisition of Ropak, also a maker of rigid plastic containers.
BWAY’s products are used primarily for packaging of industrial, bulk food and retail goods. Products include aerosol cans, ammunition boxes, cone and pour top cans, metal paint cans, oil cans, and plastic drums. The company is led by CEO Ken Roessler. BWAY operates 22 plants throughout the United States and Canada and is based in Atlanta (www.bwaycorp.com).
Platinum Equity invests in a range of industries including manufacturing, distribution, transportation and logistics, equipment rental, metals services, media and entertainment, technology, and telecommunications. Under Platinum’s ownership BWAY’s EBITDA grew approximately 45% from 2012 to 2016 as a result of operational improvements and the acquisition of Ropak.
“BWAY’s success is a testament to strong collaboration with Ken Roessler and his management team and the value of truly integrating M&A with operations at every level of the investment,” said Platinum Equity Partner Louis Samson.
Platinum Equity has completed nearly 175 acquisitions since its founding in 1995. Platinum is based in Beverly Hills with additional offices in New York and London (www.platinumequity.com).
Stone Canyon Industries invests in companies valued between $50 million and $1 billion. Sectors of interest include consumer and retail; food and ingredients; industrial; technology and business services; and transportation. The firm was founded in 2014 and is led by Co-CEOs James Fordyce and Adam Cohn and is headquartered in Santa Monica (www.stonecanyonllc.com).
Goldman, Sachs & Co. (www.goldmansachs.com) is the financial advisor to Platinum Equity and Latham and Watkins (www.lw.com) is serving as the firm’s legal counsel. BMO Capital Markets (www.bmocm.com) is the financial advisor to Stone Canyon and Gibson, Dunn & Crutcher (www.gibsondunn.com) is serving as its legal counsel.
This transaction is expected to close by the end of August 2016.
© 2016 Private Equity Professional • 6-14-16
