Bemis Company, Inc. reported financial results for its second quarter ended June 30, 2017. Refer to the reconciliation of Non-GAAP measures detailed in the attached schedule, including adjusted earnings per share, adjusted EBITDA, and net debt referenced in this release. “Total company profits were less than expected this quarter due to the impact of the challenging economic environment in Brazil. Sales volumes declined sharply in Brazil versus our run rates as consumers, retailers, and our customers reacted to the latest political instability. In our U.S. business, profits were in line with the expectations we shared last quarter,” said William F. Austen, Bemis Company’s President and Chief Executive Officer. “During June, we initiated a restructuring and cost savings plan to better position the Company in the current environment and for the long term. These efforts are progressing well to create a more agile, streamlined, and efficient business that continues to be successful over the long term.” Click Read More below for additional details.
Greif, Inc. (NYSE: GEF, GEF.B), a global leader in industrial packaging products and services, announced today that it has completed its previously announced acquisition of Caraustar Industries, Inc.
“I am pleased that we have completed the acquisition of Caraustar Industries and I welcome our new colleagues to the Greif team,” said Pete Watson, Greif’s President and Chief Executive Officer. “The addition of Caraustar bolsters our leadership position and enhances our existing portfolio of packaging solutions. We look forward to delivering on the opportunities that the addition of Caraustar provides for our team, our customers and our shareholders.”
Greif estimates that it will be able to achieve at least $45 million in cost synergies and performance improvements within the next 36 months through the integration of the former Caraustar operations into Greif’s existing business. Greif also anticipates that the acquisition will enhance Greif’s existing margins; be immediately accretive to earnings and free cash flow; and strengthen and balance Greif’s existing portfolio. Greif believes that integration risk is low given Caraustar’s operational adjacency to Greif and the strong cultural fit between the companies.
Caraustar’s financial results will be reported within Greif’s Paper Packaging and Services segment going forward. Greif’s Fiscal 2019 guidance will be updated for the inclusion of Caraustar in conjunction with the release of the company’s first quarter fiscal 2019 results.
Greif financed the $1,800.0 million all-cash acquisition from the proceeds of the issuance of $500.0 million of new senior unsecured notes and from refinancing its secured credit facilities and new term loans in the principal amount of $1,675.0 million. As part of the transaction, Greif will redeem its $250.0 million of 7.75 percent senior unsecured notes due August 2019. As a result of the new financing, Greif’s overall weighted cash interest rate fell to approximately 4.90 percent.