Stone Canyon Adds-On to BWAY
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Stone Canyon Adds-On to BWAY

BWAY Holding Company, a manufacturer of rigid metal and plastic containers and a portfolio company of Stone Canyon Industries, has agreed to acquire Industrial Container Services (ICS), a portfolio company of Centerbridge Partners. Stone Canyon acquired BWAY from Platinum Equity in June 2016.

The ICS transaction has an enterprise value of approximately $1 billion and the consideration is payable to ICS shareholders in both cash and stock of BWAY. At closing, ICS equity holders will have an approximate 11% interest in BWAY.

Industrial Container Services (ICS) was acquired by Centerbridge from Aurora Capital Group in April 2017. ICS is among the largest providers of reusable bulk containers in North America.  Through its network of 49 facilities across the United States and Canada, ICS collects, reconditions and distributes over 10 million steel, poly and intermediate bulk containers annually.

Within its industry, ICS is the only company capable of offering comprehensive services, including pickup and reconditioning of containers of all major packaging types, new container manufacturing and distribution, to customers nationally. ICS is led by CEO Charles Veniez and is headquartered north of Orlando in Maitland, FL (www.iconserv.com).

BWAY Holding Company (BWAY) operates through two subsidiaries – BWAY and Mauser Group – and has more than 9,000 employees at 115 plants across 20 countries throughout North America, Europe, Asia and South America. The BWAY subsidiary manufactures rigid metal containers including paint cans, steel pails, aerosol cans, F-style containers, monotop cans, pour top cans, ammunition boxes and oil cans. BWAY also manufactures rigid plastic packaging including pails, drums, and hybrid paint cans. The Mauser Group subsidiary (acquired by BWAY from Clayton, Dubilier & Rice in April 2017) manufactures plastic packaging, fiber drums, steel drums, intermediate bulk containers, and provides reconditioning services through its subsidiary National Container Group.  BWAY is led by CEO Ken Roessler and has an executive office near Chicago in Oak Brook, IL and a corporate office in Atlanta, GA (www.bwaycorp.com).

“We have a tremendous platform with National Container Group, and ICS not only complements our existing portfolio, but is the ideal partner to further our strategy of providing sustainable packaging solutions to our customers,” said Mr. Roessler. “I look forward to working with Charles Veniez and the ICS team to bring the businesses together and create meaningful shareholder value.”

Stone Canyon 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 Los Angeles (www.stonecanyonllc.com).

At closing of the transaction, Centerbridge Senior Managing Director Kyle Cruz will join the board of BWAY. Centerbridge invests from $50 million to $300 million in US-based leveraged buyouts and distressed securities. The firm has $28 billion of capital under management and is headquartered in New York with an additional office in London (www.centerbridge.com).

Committed debt financing for this transaction has been obtained from Bank of America Merrill Lynch, Goldman Sachs Bank USA, BMO Capital Markets, and Citigroup Global Markets.

Goldman Sachs served as the financial advisor to Stone Canyon and Piper Jaffray & Co. served as the financial advisor to Industrial Container Services.

© 2018 Private Equity Professional | June 15, 2018

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