Reynolds to acquire 2 Cascades firms
Lake Forest, Illinois, March 14, 2011
US-based Reynolds Group Holdings Limited (RGHL), a global manufacturer of food and beverage packaging products, has entered into an agreement to acquire two consumer paper product firms from Canada’s Cascades.
The consideration for the acquisition Dopaco and Dopaco Canada will be $400 million in cash, subject to customary adjustments for net debt and working capital, a statement said.
The consideration will be financed from the existing cash reserves of the RGHL group of companies, it added.
Dopaco is a leading manufacturer of paper cups and folding cartons for the quick-service restaurant and food service industries. The new product lines will complement and enhance the existing RGHL product lines allowing it to offer a broader product range and bringing additional customer relationships.
The transaction is expected to close at the end of April, subject to the satisfaction of customary conditions and regulatory approvals, according to the statement. – TradeArabia News Service