The acquired businesses of CSI provide closures for a range of bottles and containers

CSI

Image: Cerberus has agreed to acquire CSI’s North American, Costa Rican and Japanese businesses. Photo: courtesy of Adam Radosavljevic from Pixabay.

Cerberus Capital Management has agreed to acquire Closure Systems International’s (CSI) North American, Costa Rican and Japanese businesses and related facilities from Reynolds Group Holdings.

Reynolds Group will hold and continue to manage closures businesses in Europe, the Middle East, Egypt, and South America.

CSI has expertise in closure design, manufacturing, and high-speed application systems

The acquired businesses of CSI offer closures for a range of bottles and containers. CSI is also claimed to be the largest producer of closures in North America.

CSI sold more than 56 billion closure systems to the major consumer packaged goods and packaging companies across the globe in 2018.

CSI also offers high-speed beverage closure application equipment and technical consulting services to the customers, in addition to closure systems.

Cerberus managing director Lucas Batzer said: “CSI continues to be at the forefront of innovation, addressing customers’ needs for functional, efficient, and environmentally conscious beverage closures.

“We look forward to supporting the company with financial and operating resources to ensure CSI is able to extend its track record of delivering high-quality, innovative solutions to meet the evolving needs of its customers and to expand into new markets.”

Subject to necessary approvals and certain closing conditions, the deal is expected to be completed over the next two quarters.

Goldman Sachs served as exclusive financial advisor to Reynolds Group and CSI, while Schulte Roth & Zabel acted as legal counsel to Cerberu, and Debevoise & Plimpton served as legal counsel to Reynolds Group and CSI.

CSI president and CEO Floyd Needham said: “We are pleased to welcome Cerberus as our new long-term partner. Through our consistent focus on innovation, reliability, and quality, CSI has become a leader in the packaging industry with a world-class customer base.

“Cerberus brings a wealth of financial, operating, and industry expertise to this exciting new partnership, and we are confident that together we will be able to drive CSI’s next phase of growth.”

CSI offers closure solutions to different products, including carbonated soft drinks, bottled water, juices, isotonics, teas, adult beverages, liquid dairy, foods and automotive fluids.

In September 2018, CSI collaborated with Talkin’ Things, an eco-system provider that transforms traditional products using digital technologies, to bring the latest in packaging technology.