BWAY, a provider of general line rigid containers in North America, has entered into a contract with Ring Container Technologies. According to the agreement, BWAY will sell its business of blow molded plastic bottles to Ring. Plastic bottles in various sizes from one gallon to ten liters are included in this business.
These bottles are initially used in agriculture and chemicals and other end-use markets. BWAY had sales of around $21.0 million from this bottle business during the financial year, 2011.
The CEO and President of BWAY, Ken Roessler commented that the company has concentrated on establishing a prominent position in the market. This blow molded bottle sales may be considered as a good business, but the company believes that it is not practically possible to attain a considerable growth in this section. This blow molded bottle business sale allows the company to focus on its business of blow molded tight head container, which is a core market. The company will invest in the blow molded tight head container business for developing the product, new container, and manufacturing equipment potential and technology.
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. The plants located in Indianapolis and Cedar City will continue the manufacturing of other injected molded and blow molded plastic products.
Source: http://www.bwaycorp.com/