Oct. 12, 2009 (PR Newswire) --
ATLANTA, Oct. 12 /PRNewswire-FirstCall/ -- BWAY Corporation, the principal operating subsidiary of BWAY Holding Company (NYSE: BWY), a leading North American supplier of general line rigid containers, today announced that it has signed a definitive asset purchase agreement to acquire Ball Corporation's (NYSE: BLL) injection molded plastic pail plant and business located in Newnan, GA. The Company will pay approximately $32 million for the business, subject to customary post-closing adjustments. The acquisition is expected to be closed by the end of October, and funded with available cash on hand.
Commenting on the pending acquisition, Ken Roessler, BWAY's President and Chief Executive Officer stated that, "This business is an excellent fit with the Company's core market add-on acquisition strategy. In addition to sales and market share growth, this acquisition provides further product portfolio expansion through the addition of well established screw top pail designs which supports the Company's goal of positioning BWAY as the premier supplier for rigid general line packaging. We expect to realize significant synergies, including potential future plant rationalizations."
Separately, the Company reported that it expects fourth quarter and full year adjusted EBITDA and EPS to be at the high end of the guidance range provided on August 5, 2009. Adjusted free cash flow is expected to exceed $50 million, compared to August 5 guidance of $46-$48 million.
Finally, the Company stated that it will provide fiscal 2010 earnings and cash flow guidance in late October, following the close of the pending acquisition.
About BWAY Holding Company
BWAY Holding Company is a leading North American supplier of general line rigid containers. The Company operates 21 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. 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.
