Greif said that the acquisition would increase its jerrycans and small plastic bottle capacity in North America, and help in future growth through organic and inorganic reinvestment opportunities
Industrial packaging products maker Greif has signed an agreement to acquire high-performance barrier and blow moulded containers producer Lee Container for $300m.
Subject to customary closing conditions, including regulatory clearances, the all-cash transaction will be funded by Greif’s existing credit facility and is expected to complete by the end of the calendar year.
Greif said that the acquisition would increase its jerrycans and small plastic bottle capacity in North America, and help in future growth through organic and inorganic reinvestment opportunities.
It will also offer exposure to expanding agricultural and speciality chemicals end markets.
Greif president and chief executive officer Ole Rosgaard said: “The acquisition of Lee Container is a critical step in our continued Build to Last journey.
“Lee is an exceptional strategic and cultural fit, with exceptional people and values as well as a favourable mix of product and end market exposures.
“The Lee acquisition solidifies our commitment to growing our jerrycan and small plastic bottle footprint and adds a further growth engine to our GIP business.”
With its blow-moulded jerrycan technology, Lee Container serves clients in the pet care, agrochemical, and other specialised chemical sectors.
It has three manufacturing facilities in Homerville, Georgia; Centerville, Iowa; and Nacogdoches, Texas, US. They are designed to produce both custom and stock containers in a wide variety of sizes and quantities.
With more than 500 employees nationwide, the firm earned sales of $162m and adjusted EBITDA of $33m in the trailing twelve months ending September 30, 2022.
Additionally, Greif anticipates achieving approximately $6m in synergies from the transaction during the first two years of ownership.
Lee Container chief executive officer Robert Varnedoe said: “The Lee Container family is excited for today’s announcement and the opportunities it presents for our colleagues, customers and suppliers.
“Greif brings additional industry expertise, scale, and customer service focus that will be formative in continuing the strong growth fundamentals of the company.
“Our customers and suppliers will benefit from the enhanced product offering of Greif, and I’m most excited that our colleagues will join a thriving, people-first culture at Greif.”