Tue, 15/10/2019 - 09:05
An affiliate of alternative investment specialist Cerberus Capital Management is to acquire the North American, Costa Rican, and Japanese businesses and related facilities of Closure Systems International, a specialist inclosure design, manufacturing, and high-speed application systems, from Reynolds Group Holdings Limited (Reynolds Group).
Reynolds Group will retain and continue to operate closures businesses in Europe, the Middle East, Egypt, and South America.
The acquired businesses of Closure Systems International (CSI) provide closures for a wide variety of bottles and containers and is the largest producer of closures in North America. In 2018, CSI sold over 56 billion closure systems globally to some of the largest consumer packaged goods and packaging companies in the world. In addition to closure systems, CSI provides premier high-speed beverage closure application equipment and technical consulting services based on deep experience and a long track record of innovation.
“CSI continues to be at the forefront of innovation, addressing customers’ needs for functional, efficient, and environmentally conscious beverage closures,” says Lucas Batzer, Managing Director at Cerberus. “The enthusiasm and capabilities of the CSI leadership team have impressed us from the start. We look forward to supporting the company with financial and operating resources to ensure CSI is able to extend its track record of delivering high-quality, innovative solutions to meet the evolving needs of its customers and to expand into new markets.”
Floyd Needham, President and CEO of CSI, says, “We are pleased to welcome Cerberus as our new long-term partner. Through our consistent focus on innovation, reliability, and quality, CSI has become a leader in the packaging industry with a world-class customer base. Cerberus brings a wealth of financial, operating, and industry expertise to this exciting new partnership, and we are confident that together we will be able to drive CSI’s next phase of growth.”
The transaction is expected to close over the next two quarters, subject to necessary approvals and certain closing conditions. Goldman Sachs & Co. LLC acted as exclusive financial advisor to Reynolds Group and CSI. Schulte Roth & Zabel LLP acted as legal counsel to Cerberus, and Debevoise & Plimpton LLP served as legal counsel to Reynolds Group and CSI.
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