Plymouth Township-based Plastipak Packaging Inc. announced today it will acquire the APPE Packaging Division owned by La Seda de Barcelona Group in Spain for nearly $367 million.
“We have evaluated the organizational strengths of APPE’s business and have completed a comprehensive analysis of APPE’s sites, machinery, and intellectual property, and as a result, we are confident that this transaction will enable us to better serve our existing and future customers,” says Frank Pollock, COO of Plastipak.
Today’s announcement concludes a six-month competitive process to sell the APPE Packaging Division in connection with La Seda’s pending insolvency proceedings. The winning bid was about $448 million, and included a gross up of about $81 million of accounts payable that will be transferred with the business, but will be discounted from the bid.
Plastipak operates more than 27 sites in the United States, South America, and Europe, with a total of more than 4,000 employees. Like Absopure Water Co., which is based in Plymouth Township and distributes water products to retail outlets and homes nationwide, Plastipak is privately owned by the Young family.
“We are continuing to improve our organizational capabilities to earn the confidence and loyalty of our customers in all the categories we serve,” says William C. Young, president and CEO of Plastipak. “This includes investments in packaging that address changing consumer demands and lifestyles.”
The transaction, expected to close in early 2015, is subject to the negotiation of binding purchase agreements, regulatory approvals, and certain other closing conditions.