Berry pays $475 million for Clopay to expand in healthcare plastics
Berry Global Group Inc. (NYSE: BERY) has agreed to buy Clopay Pastic Products from Griffon Corp. (NYSE: GFF) for $475 million. The buyer is making the move to expand into other markets such as healthcare.
“The proposed acquisition of Clopay is directly aligned with our fundamental strategic initiatives,” says Berry CEO Tom Salmon. "The combination of Clopay with Berry’s health, hygiene, and specialties division broadens our position within the faster growing health and hygiene markets."
Clopay makes plastics films for the healthcare, construction and industrial sectors. The target has around $461 million in annual sales and $53 million in Ebitda.
Evansville, Indiana-based Berry serves the household and personal care, food and beverage and healthcare sectors. In 2017, the company acquired rival AEP Industries. Goldman Sachs & Co. (NYSE: GS) and Dechert LLP are advising Griffon.
Griffon is a New York-based holding company that operates through several subsidiaries. The company consists of a home and building products division, which includes Ames and Clopay Building Products Co. In 2017, Griffon bought ClosetMaid, a provider of home organization and storage materials, from Emerson (NYSE: EMR) for $260 million.
In other mid-market plastic deals, Loews Corp. (NYSE: L) bought plastic container producer Consolidated Container; Sentinel acquired plastic films company NeKoosa; and Sonoco (NYSE: SON) purchased Clear Lame Packaging, another packaging and plastics products maker.