Stone Canyon Industries LLC said Dec. 27 that it has recapped its subsidiary SCI PH Inc, parent of BWAY and Mauser, and sold a chunk of the company to new minority investors Ontario Teachers’ Pension Plan, Canyon Capital Advisors, the Public Sector Pension Investment Board and Arcadia Investment Partners LLC. The deal calls for issuing $850 million of series A preferred stock to Canyon Capital Advisors, PSP Investments and existing investors, as well as series B non-voting stock to OTPP, Arcadia and PSP. Proceeds from the offering will be used for general corporate purposes and making a distribution to existing equity holders. Stone Canyon acquired BWAY in 2016 from Platinum Equity for $2.4 billion. Stone Canyon this year then bought Mauser from Clayton, Dubilier & Rice for $2.3 billion.
LOS ANGELES, Dec. 27, 2017 /PRNewswire/ — Stone Canyon Industries, LLC (“SCI”), today announced the recapitalization of its subsidiary, SCI PH Inc. (“SCI Packaging”), the parent of BWAY and Mauser and a leading global supplier of rigid packaging products and services.
The transaction includes the issuance of an aggregate of $850 million of (i) Series A Senior Non-Voting Perpetual Preferred Stock to affiliates of Canyon Capital Advisors LLC (“Canyon”), the Public Sector Pension Investment Board (“PSP Investments”) and existing investors; and (ii) Series B Junior Non-Voting Convertible Preferred Stock (“Series B Preferred Stock”) to investors led by affiliates of Ontario Teachers’ Pension Plan (“Ontario Teachers'”) and including affiliates of Arcadia Investment Partners LLC (“Arcadia”) and PSP Investments, constituting a minority equity investment in SCI Packaging (on an as-converted basis). The proceeds from the offerings will be used for general corporate purposes, including to make a distribution to existing equityholders.
“We are pleased to partner with Ontario Teachers’, Canyon, PSP Investments and Arcadia, and look forward to working together,” said Ken Roessler, CEO of BWAY. “The combined company continues to perform strongly. Bringing together these partners represents the next step in the evolution of the company as a global leader in the rigid packaging space.”
“Stone Canyon welcomes our new shareholders,” said Stone Canyon Packaging Chairman James Fordyce. “We are excited to have them join us in building one of the world’s largest rigid packaging companies. Ken Roessler and his team have done a wonderful job. We thank them for their hard work.”
About Stone Canyon Industries
Stone Canyon Industries is a global industrial holding company headquartered in Los Angeles, CA. With consolidated revenues of over $3 billion generated from several core industry verticals, companies within the SCI family operate in over 160 locations throughout 18 countries with over 10,000 employees dedicated to providing products and services of unmatched quality and reliability to thousands of customers around the world. These SCI companies 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.
About SCI Packaging
SCI Packaging, through its subsidiaries, BWAY and Mauser, is a leading global supplier of rigid packaging products and services. The Company’s more than 9,000 employees currently operate 140 manufacturing facilities throughout the world serving industry-leading customers on an international basis.
BWAY is a leading North American supplier of general line rigid containers. BWAY’s rigid metal containers include paint cans, steel pails, aerosol cans, F-style containers, monotop cans, pour top cans, ammunition boxes and oil cans. The company also manufactures rigid plastic packaging including pails, drums, and hybrid paint cans.
Mauser is a leading global supplier of industrial rigid packaging products and services, including the manufacturing of plastic packaging, fiber drums, steel drums, Intermediate Bulk Containers (“IBC”) and the reconditioning of used IBCs and plastic drums.
About Ontario Teachers’ Pension Plan
The Ontario Teachers’ Pension Plan (Ontario Teachers’) is Canada’s largest single-profession pension plan, with $180.5 billion in net assets at June 30, 2017. It holds a diverse global portfolio of assets, approximately 80% of which is managed in-house, and has earned an annualized gross rate of return of 10.1% since the Plan’s founding in 1990. Ontario Teachers’ is an independent organization headquartered in Toronto. Its Asia-Pacific region office is located in Hong Kong and its Europe, Middle East & Africa region office is in London. The defined-benefit plan, which is fully funded, invests and administers the pensions of the province of Ontario’s 318,000 active and retired teachers.
About Canyon Capital Advisors LLC
Canyon Capital Advisors LLC is a leading alternative asset manager serving institutional clients worldwide. The firm seeks to achieve superior, risk-adjusted returns in excess of the debt and equity market indices with lower volatility. Canyon Capital and its affiliates currently manage investment funds and separate accounts amounting to more than $23 billion in assets with a staff of over 220, including more than 100 investment professionals. The firm was founded in 1990 and is headquartered in Los Angeles, with offices in London, New York, Hong Kong, Shanghai and Tokyo. Canyon Capital has been an SEC registered investment advisor since 1994.
About PSP Investments
The Public Sector Pension Investment Board (“PSP Investments”) is one of Canada’s largest pension investment managers with C$139.2 billion of net assets under management as at September 30, 2017. It manages a diversified global portfolio composed of investments in public financial markets, private equity, real estate, infrastructure, natural resources and private debt. Established in 1999, PSP Investments manages net contributions to the pension funds of Canada’s federal Public Service, the Canadian Armed Forces, the Royal Canadian Mounted Police and the Reserve Force. Headquartered in Ottawa, Canada, PSP Investments has its principal business office in Montréal and offices in New Yorkand London, its European hub.
About Arcadia Investment Partners LLC
Arcadia is a New York City based investment management firm, founded in 2001. Arcadia’s investment activities are focused primarily on illiquid alternative assets across private equity, real estate and special situations opportunities. Arcadia invests on behalf of its internal partners as well as limited partner capital from ultra-high net worth families and institutional investors.