Markets

Berry Plastics' Shares Gain on Closing Avintiv Buyout

Berry Plastics Group, Inc.BERY completed the previously announced acquisition of Avintiv from private equity funds managed by Blackstone for approximately $2.45 billion in cash. The deal is touted to be Berry Plastic's largest and will expand its reach beyond plastic consumer packaging. Shares of Berry Plastics have gained 7% since the announcement on Oct 1.

Avintiv, which makes materials used in products ranging from diapers to disinfectant wipes, has 23 locations in 14 countries and supplies to many of the consumer and industrial product manufacturers that Berry Plastics supplies to. Berry Plastics expects the deal to add to its earnings and free cash flow.

The combination of Berry Plastics and Avintiv creates a global leader in plastics packaging and engineered specialty materials. This move will help Berry Plastics to expand its global footprint while adding complementary products to its existing product portfolio. The company will be able to further capitalize on the rapidly growing global markets for hygiene and healthcare products.

This acquisition is the latest in a string of deals in the packaging industry, following the merger of Rock-Tenn Company with MeadWestvaco Corporation to form WestRock Company WRK in January. This collaboration has created the second-largest U.S. packaging company worth $16 billion, trailing only International Paper Company, which has a market capitalization of nearly $22 billion.

In September, glass container maker, Owens-Illinois, Inc. OI completed the acquisition of the food and beverage glass container business of Mexican company, Vitro, for $2.15 billion. Moreover, Beverage can maker Ball Corporation BLL has announced its intent to buy Rexam for $6.8 billion.

Berry Plastics carries a Zacks Rank #4 (Sell).

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days . Click to get this free report >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

BALL CORP (BLL): Free Stock Analysis Report

OWENS-ILLINOIS (OI): Free Stock Analysis Report

BERRY PLASTICS (BERY): Free Stock Analysis Report

WESTROCK CO (WRK): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

BERY WRK BLL OI

Other Topics

Stocks

Latest Markets Videos

    Zacks

    Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at www.zacks.com.

    Learn More