Platinum Equity LLC, the private- investment firm founded by billionaire Tom Gores, agreed to buy packaging company BWAY Parent Company Inc. in a deal worth $1.24 billion.
Platinum will acquire BWAY from private-equity firm Madison Dearborn Partners LLC, the companies said today in a statement. The deal, which is expected to close in the fourth quarter, will be financed by Platinum and members of BWAY’s management, along with debt committed by Bank of America Merrill Lynch and Deutsche Bank AG.
“We are excited to bring our operational capabilities to bear and to partner with the company’s management team to build on BWAY’s strong fundamentals,” Louis Samson, a partner at Platinum, said in the statement.
Madison Dearborn’s sale follows an overhaul of the Atlanta- based company, which it bought for about $900 million in 2010. BWAY, founded in 1875 as a pie-tin maker, has expanded into both plastic and steel pails and containers under the leadership of chief executive officer Kenneth Roessler.
The sale attracted more than six potential bidders, including financial investors and strategic companies, two people with knowledge of the situation said earlier this week.
BWAY makes metal ammunition boxes for the U.S. Department of Defense and other rigid containers from 22 plants in the U.S. and Canada. The company had $833.8 million in long-term debt and other liabilities and total assets of $1.17 billion as of June 30.
Platinum, based in Beverly Hills, California, has been involved in more than 130 acquisitions since Gores founded it in 1995, according to the firm’s website. It has investments in industrials, manufacturing, information technology, telecommunications and transportation and logistics.
Goldman Sachs Group Inc., Barclays Plc, Deutsche Bank AG and Kirkland & Ellis LLP advised BWAY on the transaction. Latham & Watkins served as legal adviser to Platinum.
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