Greif to Acquire Lee Container for $300M - Modern Distribution Management

Greif to Acquire Lee Container for $300M

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
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DelawareOhio-based industrial packaging producer Greif, Inc. announced Nov. 9 it has agreed to acquire Lee Container Corporation, Inc. — a manufacturer of jerrycans and other barrier and conventional blow-molded containers — for $300 million. The purchase price is before taking into consideration tax benefits with an estimated net present value of approximately $30 million, Greif said in a news release.

The all-cash transaction, which will be funded through Greif’s existing credit facility, is expected to close by the end of the calendar year, Greif said.

“The acquisition of Lee Container is a critical step in our continued Build to Last journey”, said Ole Rosgaard, President and CEO of Greif. “Lee is an exceptional strategic and cultural fit, with exceptional people and values as well as a favorable mix of product and end market exposures. The Lee acquisition solidifies our commitment to growing 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.”

Lee Container operates manufacturing facilities in Homerville, GeorgiaCenterville, Iowa, and Nacogdoches, Texas, with more than 500 employees. For the 12 months ending September 30, Lee generated sales of $162 million and adjusted EBITDA of $33 million. As part of the deal, Greif said it also expects to see approximately $6 million in “synergies” within the first two years of ownership.

Greif said the acquisition will produce multiple benefits, including:

  • Immediate scale in jerrycans and small plastic bottles in North America, with a platform for “future growth through both organic and inorganic reinvestment opportunities.”
  • Favorable exposure to growing agricultural and specialty chemicals end markets, which offers portfolio diversification benefits to Greif’s GIP business mix.
  • Margin accretive transaction pre-synergies, with multiple levers for value creation and incremental synergy capture under Greif ownership.
  • Attractive return profile given strong strategic fit, upside optionality for growth, and strong cultural alignment with Greif.

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