EVANSVILLE - Berry Global Group announced it has entered into an agreement to acquire the Clopay Plastic Products Co. a subsidiary of Griffon Corp., for $475 million.
The transaction will increase Berry’s position within fast-growing health and hygiene markets and grow its worldwide presence, according to the Evansville- based company.
Clopay is a global supplier of printed breathable films. It also is an innovator in the development of elastic films and laminates with product offerings designed for hygiene, healthcare, construction and industrial protective apparel, according to a Berry news release. Clopay has nearly 1,500 employees at its locations in the United States, Germany, Brazil, and China. The company Clopay delivered $461 million in sales and $53 million in operating EBITDA (earnings before interest, taxes, depreciation and amortization) for its fiscal year ended Sept. 30.
“The proposed acquisition of Clopay is directly aligned with our fundamental strategic initiatives,” said Tom Salmon, CEO of Berry, in the release.
According to Berry, its acquisition of Clopay will allow the company to better use 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.”
Berry officials said they expect the acquisition to bring about $20 million in “clearly identifiable cost synergies” over the next two years.
Stock of Berry traded at just over $60 a share Thursday.