ATLANTA, Dec. 20, 2010 /PRNewswire/ -- BWAY Holding Company, a leading North American supplier of general line rigid containers, today announced that the Company has acquired Phoenix Container, Inc., a leading U.S. producer of steel pails, in a stock purchase transaction.
Phoenix Container, headquartered in North Brunswick, NJ operates one plant there producing a wide range of steel pails used for packaging industrial and consumer products. The Company generated net sales during 2009 of $34 million. The acquisition was funded with available cash on hand and borrowings under the Company's revolving credit facility.
Commenting on the acquisition, Ken Roessler, BWAY's President and Chief Executive Officer, stated that, "This acquisition represents a continuation of BWAY's strategy to invest in growth within our core markets where significant synergies exist. Phoenix Container serves to expand our geographic coverage in the North American steel pail market, provides opportunity for manufacturing optimization and investment, and will allow the Company to more effectively serve a wider range of customers."
About BWAY Holding Company
BWAY Holding Company is a leading North American supplier of general line rigid containers. The Company operates 23 plants (including Phoenix Container) 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. You should not place reliance on these statements. Forward-looking statements include information concerning the Company's liquidity and its possible or assumed future results of operations, including descriptions of its 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 management has made in light of its experience in the industry as well as its perceptions of historical trends, current conditions, expected future developments and other factors management believes 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. They involve risks, uncertainties and assumptions. Many factors could affect the Company's actual financial results and could cause actual results to differ materially from those expressed in the forward-looking statements. Some important factors include competitive risk from other container manufacturers or self-manufacture by customers, termination of customer contracts, loss or reduction of business from key customers, dependence on key personnel, changes in steel, resin, other raw material and energy costs or availability, product liability or product recall costs, lead pigment and lead paint litigation, increased consolidation in end markets, consolidation of key suppliers, contractions in end markets, increased use of alternative packaging, labor unrest, environmental, health and safety costs, management's inability to evaluate and selectively pursue acquisitions, fluctuation of quarterly operating results, an increase in interest rates, restrictions in debt agreements, fluctuations of the Canadian dollar, and the other factors discussed in the Company's filings with the Securities and Exchange Commission. 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 the Company or persons acting on behalf of the Company are expressly qualified in their entirety by the foregoing cautionary statements. All such statements speak only as of the date made, and the Company undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.
SOURCE BWAY Holding Company