BWAY, a subsidiary of Stone Canyon Industries LLC, has closed its previously announced acquisition of Industrial Container Services, a provider of container solutions, container services and container management systems. The seller was Centerbridge Partners. The value of the deal was about $1 billion. As a result of the transaction, Centerbridge Senior Managing Director Kyle Cruz has joined BWAY’s board.
LOS ANGELES, Aug. 24, 2018 /PRNewswire/ — Stone Canyon Industries LLC (“SCI”), through its subsidiary, BWAY Holding Company (“BWAY”), is pleased to announce the successful closing today of its previously announced purchase agreement to acquire the parent holding company of Industrial Container Services, LLC (“ICS”), a leading provider of container solutions, container services, and container management systems. BWAY is a leading global supplier of industrial rigid packaging products and services.
The transaction, which is comprised of cash and stock consideration payable to ICS shareholders that include investment funds affiliated with Centerbridge Partners, L.P. (“Centerbridge”), has an enterprise value of approximately $1.0 billion. On a pro forma basis, after giving effect to the acquisition, existing ICS equityholders will have an approximate 11% interest in BWAY. As a result of the transaction terms, Centerbridge Senior Managing Director Kyle Cruz has joined the board of BWAY. The transaction has received all necessary regulatory approvals.
“I’m very excited to welcome Charles Veniez and ICS to the BWAY team,” said Ken Roessler, Chief Executive Officer of BWAY. “We will immediately begin working together to execute on our strategy of providing sustainable packaging solutions to our customers, meaningful value for our shareholders, and enhanced career opportunities for our employees.”
Mr. Cruz of Centerbridge said: “Since our acquisition of ICS, we’ve partnered with Charles Veniez and his team to expand ICS’s footprint and improve operational performance. Combining with BWAY represents a unique opportunity for ICS to become part of this broader platform of leading industrial packaging solutions.”
Mr. Veniez, President and CEO of ICS added: “The combination of these great brands lays the foundation to create tremendous value and opportunities for our various stakeholders: employees, customers, and vendors alike. Our ability to offer a full suite of products and services across vast geographies is exciting.”
As previously disclosed, BWAY has obtained debt financing from Bank of America Merrill Lynch, Goldman Sachs Bank USA, BMO Capital Markets, and Citigroup Global Markets Inc. Goldman Sachs served as financial advisor to SCI and Piper Jaffray & Co. served as financial advisor to ICS. Gibson, Dunn & Crutcher LLP served as legal advisor to SCI and Kirkland & Ellis LLP served as legal advisor to Centerbridge and ICS.
About Stone Canyon Industries
Stone Canyon Industries (“SCI”) is a global industrial holding company headquartered in Los Angeles, CA. With consolidated revenues of over $3 billion generated from several core industry verticals, Stone Canyon operates in over 160 locations throughout 18 countries. The company has over 10,000 employees dedicated to providing products and services of unmatched quality and reliability to thousands of customers around the world. Companies within the Stone Canyon family typically share similar characteristics, such as: market leaders within an industry or sector, mission critical products or services, a blue-chip customer base, and a platform for future growth through acquisitions. http://stonecanyonllc.com/
About BWAY Holding Company
BWAY Holding Company is a leading global supplier of industrial rigid packaging products and servcies. The company’s more than 9,000 employees operate 115 plants across 20 countries throughout North America, Europe, Asia and South America. Through its BWAY subsidiary, it manufactures rigid metal containers including paint cans, steel pails, aerosol cans, F-style containers, monotop cans, pour top cans, ammunition boxes and oil cans. BWAY also manufactures rigid plastic packaging including pails, drums, and hybrid paint cans. Its Mauser Group subsidiary is a worldwide leading producer of industrial packaging with more than 5,000 employees. Mauser’s product portfolio includes plastic packaging, fiber drums, steel drums, intermediate bulk containers, and reconditioning services through NCG, a Mauser subsidiary. Mauser provides sustainability-oriented, full-cycle services – from production to recycling (“ECO-CYCLE®”) to customers in the chemical, agrochemical, petrochemical, pharmaceutical and food and beverage industries.
About Centerbridge Partners
Centerbridge Partners, L.P. is a private investment management firm employing a flexible approach across investment disciplines—from private equity to credit and related strategies, and real estate—in an effort to find the most attractive opportunities for our investors and business partners. The firm was founded in 2005 and as of March 2018 has approximately $28 billion in capital under management with offices in New York and London.
Centerbridge is dedicated to partnering with world-class management teams across targeted industry sectors and geographies to help companies achieve their operating and financial objectives. For more information, please visit www.centerbridge.com.