PLYMOUTH, Michigan, March 31, 2015 /PRNewswire/ -- Plastipak Packaging, Inc., a leading global manufacturer of rigid plastic packaging, is pleased to announce that it has signed a definitive purchase agreement to acquire the APPE Packaging Division of La Seda de Barcelona Group, following its selection in November as the winning bidder in an insolvency auction process. Subject to regulatory approval and certain other conditions, closing is expected to occur in June or July of 2015.
Plastipak's winning bid was €360 million and included a gross up of €65 million of accounts payable that will be transferred with the business, but will be discounted from the bid, and result in an actual consideration for the business of €295 million.
As it negotiated the purchase agreement, Plastipak has continued to conduct due diligence of APPE and is very satisfied that the APPE business has maintained its success under challenging conditions. "We remain confident that this transaction will enable us to better serve our existing and future customers and ultimately to benefit consumers," said Plastipak's Chief Commercial Officer, Frank Pollock. He added that Plastipak's and APPE's combined talent, technology, and manufacturing footprint will bring to their valued customers and consumers additional and more complete packaging solutions.
William C. Young, President and CEO of Plastipak, stated that "We look forward to welcoming the APPE workforce to our organization, and to adding their talent and capabilities to our own in the marketplace. We are also eager to begin investing in the combined operations to continue to develop and offer innovative packaging solutions that address changing consumer demands and lifestyles."
Plastipak Packaging, Inc., a wholly-owned subsidiary of Plastipak Holdings, Inc., is a world leader in the design and manufacture of high-quality, rigid plastic containers for the food, beverage, and consumer products industries. Plastipak operates more than 33 sites in the United States, South America and Europe, with a total of over 4,000 employees. Its customers include some of the world's most respected and recognized consumer brands. Plastipak is also a leading innovator in the packaging industry, holding more than 400 United States patents for its state-of-the-art package designs and manufacturing processes. In addition, Plastipak licenses various packaging technologies around the world. Plastipak was founded in 1967 and is headquartered in Plymouth, Michigan. Additional information about Plastipak can be found at its website www.plastipak.com
Statements in this press release concerning Plastipak's intentions, expectations or predictions about future results or events are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements reflect management's current expectations or beliefs, and are subject to risks and uncertainties that could cause actual results or events to vary from stated expectations, which variations could be material and adverse. Forward-looking statements speak only as of the time made, and the Company assumes no obligation to publicly update any such statements.
SOURCE Plastipak Packaging, Inc.