Stone Canyon Industries Announces Closing Of Industrial Container Services Acquisition From Centerbridge
27 August 2018
Stone Canyon Industries LLC, through its subsidiary, BWAY Holding Company, 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.
Source: prnewswire.com