Greif Expands in Europe and Asia
October 26 2006 - 8:59AM
PR Newswire (US)
DELAWARE, Ohio, Oct. 26 /PRNewswire-FirstCall/ -- Greif, Inc.,
(NYSE: GEF; GEF.B) has signed a definitive purchase agreement to
acquire Blagden Packaging Group's steel drum manufacturing and
closures business in Europe and Asia, subject to certain
conditions. The net sales of the acquired activities are
approximately US $265 million on an annualized basis. Terms of the
deal, which is anticipated to close in Greif's first quarter of
fiscal 2007, were not disclosed. Greif expects the acquisition to
be accretive to its 2007 fiscal year earnings. The Company's fiscal
year begins Nov. 1, 2006. "Acquisition of Blagden's steel drum and
closures business is consistent with Greif's long-term strategy to
be the leading producer of industrial packaging around the world,"
said Michael J. Gasser, Greif chairman and chief executive officer.
"We expect our shareholders, customers and employees alike will
benefit from our industry consolidation activities and expanded
network in Europe and Asia." Ivan Signorelli, Senior Vice
President, Industrial Packaging & Services - Europe, said,
"Greif will always remain committed to providing customers with
high-quality industrial packaging and value-added services. By
adding Blagden's steel drum and closures business to Greif's
existing footprint, our customers can be assured of a continued
optimal and cost-effective supply of packaging material for the
future." The acquired operations have 820 employees in the
Netherlands, Belgium, France, the United Kingdom, Spain, Singapore,
Malaysia and China. Blagden's successor company will, as European
market leader, focus on collection, reconditioning and recycling of
industrial packaging around the world as well as production of
steel and tinplate pails and cans in certain areas. Also integral
to the acquisition is Greif's cooperation with that company's drum
reconditioning operations for drum collection services and
closed-loop solutions for Greif's customers. Greif, Inc. is the
world leader in industrial packaging products and services. The
company produces steel, plastic, fibre, corrugated and multiwall
containers, protective packaging and containerboard, and provides
blending and packaging services for a wide range of industries.
Greif also manages timber properties in North America. The company
is strategically positioned in more than 40 countries to serve
global as well as regional customers. Additional information is on
the company's Web site at http://www.greif.com/. DATASOURCE: Greif,
Inc. CONTACT: Deb Strohmaier, APR, Director, Communications of
Greif, Inc., +1-740-549-6074, or cell, +1-740-953-0143, or Web
site: http://www.greif.com/
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