The agreement is subject to a post-closing working capital adjustment.
Founded in 1957, Webster sold 93 million pounds of product with recorded net sales of $145m in 2010. Webster’s product lines include high value-added food contact products, which consist of food storage and freezer bags with a resealable zipper, bags with a slider close, fold top and twist tie food storage and sandwich bags, and conventional trash bag products.
Brendan Barba, chairman, president and CEO of the company, said: “The private-label market continues to thrive, and with a stronger, more diversified portfolio of products, we will be able to build on our success in the plastics industry and create additional long-term value for our shareholders. We expect to achieve significant cost savings, realised principally from improved resin purchasing and other synergies throughout the combined organisation.”
The transaction is expected to close in two to three weeks and is subject to specified closing conditions. The company plans to finance the transaction through a combination of cash on hand and availability under its revolving credit facility.
Source: AEP Industries
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