BWAY Corporation Announces Sale of Plastic Bottle Business

ATLANTA, March 8, 2012 /PRNewswire/ -- BWAY Corporation, a leading North American supplier of general line rigid containers, today announced that it has signed an agreement to sell the Company's blow molded plastic bottle business to Ring Container Technologies, Inc. The business includes a variety of plastic bottles generally ranging in size from one gallon to ten liters primarily serving the agricultural and other chemicals markets, and various other end-use markets. BWAY Corporation had sales from this business of approximately $21.0 million in fiscal 2011.

Commenting on the pending sale, Ken Roessler, BWAY's President and Chief Executive Officer stated that, "BWAY's strategy is focused on building leading positions in markets we choose to serve. While blow molded bottles represent a good business, we are simply not a meaningful market participant, and we do not believe that substantial growth in this segment is practical for BWAY. This sale allows us to focus on the Company's blow molded tighthead container business, a core market where we hold the leading market position. Our focus will include blow molded tighthead container investments in product development, new container and manufacturing equipment technologies, and capacity." 

The transaction is structured as an asset sale and includes certain equipment currently located at the Company's Indianapolis, IN and Cedar City, UT plants. These plants will continue to operate producing other blow molded and injected molded plastic products. The transaction is expected to close within the next 30 days, at which time BWAY and Ring will begin an orderly transition of the business. Net proceeds from the sale will be used to reduce the Company's term loan debt.

About BWAY Corporation
BWAY Corporation is a leading North American supplier of general line rigid containers. The Company operates 22 plants throughout the United States and Canada serving industry leading customers on a national basis.

Cautionary Note Regarding Forward-Looking Statements
This document contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, and are subject to substantial risks, uncertainties and assumptions. You should not place reliance on these statements. Forward-looking statements include information concerning our liquidity and our possible or assumed future results of operations, including descriptions of our business strategies. These statements often include words such as "believe," "expect," "anticipate," "intend," "plan," "estimate," "seek," "will," "may" or similar expressions. These statements are based on certain assumptions that we have made in light of our experience in the industry as well as our perceptions of historical trends, current conditions, expected future developments and other factors we believe are appropriate in these circumstances. As you read and consider this document, you should understand that these statements are not guarantees of performance or results. Many factors could affect our actual performance and results and could cause actual results to differ materially from those expressed in the forward-looking statements. Please refer to our filings with the United States Securities and Exchange Commission, for a discussion of other factors that may affect future performance or results.

In light of these risks, uncertainties and assumptions, the forward-looking statements contained in this document might not prove to be accurate and you should not place undue reliance upon them. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by the foregoing cautionary statements. All such statements speak only as of the date made, and we undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

SOURCE BWAY Corporation