In this blog post, we look at how working with your packaging provider early in the product development process can help combat food waste. If food waste were represented as a standalone country, it would be the third-largest emitter of greenhouse gases globally after China and the U.S.1This statistic may not be well-known, but it is one we are keenly aware of at Crown. That is why we have partnered with Dr. Lilly DaGama, a food waste consultant and founder of The Food Waste Doctor, to drill down into the food waste issue and discover where metal packaging can make an impact. The value of involving packaging manufacturers early in the process – even as early as the concept phase–as opposed to the point when a product is already developed can not be underestimated. Far more can be done to ensure the package itself can make a difference in terms of food waste if this is the case, as features can be incorporated before a concept goes into production.
Berry Global Group, Inc. (“Berry”) (NYSE: BERY) announced that it has entered into a definitive agreement to acquire the Clopay Plastic Products Company, Inc. (“Clopay”), a subsidiary of Griffon Corporation (NYSE:GFF), for $475 million in cash on a debt-free, cash-free basis.
Clopay is a global supplier of printed breathable films as well as an innovator in the development of elastic films and laminates with product offerings uniquely designed for applications used in a number of markets including; hygiene, healthcare, construction and industrial protective apparel. Clopay has nearly 1,500 employees with a footprint serving markets across the globe with locations in the United States, Germany, Brazil, and China. Clopay delivered $461 million in sales and $53 million in operating EBITDA for its fiscal year ended September 30, 2017. We expect annual cost synergies to be approximately $20 million. The purchase price, including our expected cost synergies along with the tax basis step-up value, represents an adjusted EBITDA multiple of below 6 times.
“The proposed acquisition of Clopay is directly aligned with our fundamental strategic initiatives,” said Tom Salmon, CEO of Berry. “We are extremely excited with what Clopay’s global capabilities and unique technology platform will add to our organization. The combination of Clopay with Berry’s Health, Hygiene, and Specialties division broadens our position within the faster growing health and hygiene markets. Clopay will bring Berry new capabilities in the production of technical films, where they are a known innovator with patent protected breathable hygiene films.”
Complementary products. Together we will be able to optimize complementary production capacities, reduce material and conversion costs, and better serve customers from an expanded global footprint with a portfolio of products that is one of the most comprehensive in the industry.
Faster growing markets. Increases Berry’s position within the faster growing health and hygiene markets using innovative patent protected technologies.
Significant, clearly identifiable cost synergies. Berry expects to realize cost synergies in line with previous Berry acquisitions of a similar nature.
The transaction is expected to be completed in early 2018, subject to customary closing conditions, including applicable regulatory approvals. Berry intends to fund the acquisition with existing liquidity or additional debt offering.