It is no small takeover: the manufacturer of industrial packaging Greif (Delaware, Ohio / USA) is about to buy the Lee Container Corporation (Homerville, Georgia / USA; www.leecontainer.com), a manufacturer of blow-moulded PE canisters for the Agrochemical, pet food, oil and lubricants sectors. Greif estimates the acquisition price at USD 300 million (EUR 285 million), but this is before tax effects of around USD 30 million are taken into account. The transaction, which the buyer is financing through loans, is scheduled to take place in 2022.
Lee Container operates three facilities in Homerville, Georgia, Centerville, (Iowa) and Nacogdoches, Texas. With more than 500 employees, the US company generated sales of USD 162 million and an EBITDA of USD 33 million in the twelve months to the end of September. Greif expects synergies of around USD 6 million within the first two years from the takeover.