Greif To Acquire Lee Container Corporation
Top Awards (CONT’D FROM PAGE 14) The Perfect Combo Get Peak Performance From Your Equipment with Matched Component Sets
Delaware, Ohio based Greif, Inc. has announced it has entered into an agreement to acquire Lee Container Cor- poration, Inc., a manufacturer of high-performance barrier and conventional blow molded containers, for $300 mil- lion. The purchase price is before taking into consider- ation the tax benefits which has an estimated net present value of approximately $30 million. The all-cash transaction will be funded through Greif's existing credit facility and is expected to close by the end of the calendar year. Lee Container is a leader in the North American blow molded jerrycan industry, primarily serving growth-orient- ed customers in the agrochemical, other specialty chemi- cal, oil and lubricant, and pet care segments. Lee Contain- er operates three manufacturing facilities in Homerville, Georgia; Centerville; and Nacogdoches, Texas, with over 500 employees throughout the U.S. For the last 12 months ending September 30, 2022, Lee generated sales of $162 million and adjusted EBITDA of $33 million. As part of the acquisition Greif also expects to realize approximately $6 million in synergies within the first two years of ownership. "The acquisition of Lee Container is a critical step in our continued Build to Last journey," said Ole Rosgaard, President and Chief Executive Officer of Greif. "Lee is an exceptional strategic and cultural fit, with exceptional peo- ple and values as well as a favorable mix of product and end market exposures. “The Lee acquisition solidifies our commitment to grow- ing our jerrycan and small plastic bottle footprint and adds a further growth engine to our GIP business. I am excited to welcome our new colleagues to the Greif family and look forward to growing our business together with them." Robert Varnedoe, Chief Executive Officer of Lee Con- tainer, said that the Lee Container family is excited about the acquisition and the opportunities it presents for its col- leagues, customers and suppliers. "Greif brings additional industry expertise, scale, and customer service focus that will be formative in continuing the strong growth fundamentals of the company,” Varne- doe said. “Our customers and suppliers will benefit from the enhanced product offering of Greif, and I'm most ex- cited that our colleagues will join a thriving, people-first culture at Greif." The acquisition represents numerous key strategic benefits, including: • Immediate scale in jerrycans and small plastic bottles in North America, with a platform for future growth through organic and inorganic reinvestment opportu- nities • Exposure to growing agricultural and specialty chemi- cals end markets, which offers portfolio diversification benefits to Greif's GIP business mix.
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November 21, 2022
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