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Food & Beverage

Reynolds Group to Buy Graham Packaging for $1.68 Billion

June 20, 2011
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The Associated Press reports, Graham Packaging Company Inc. is being purchased by New Zealand''s Reynolds Group Holdings Ltd. for about $1.68 billion, after rival bidder Silgan Holdings Inc. failed to come up with a better offer. Graham, based in York, Pa., had told Silgan on Monday that it planned to accept Reynolds'' bid of $25.50 a share, saying that it was superior to Silgan''s offer. Reynolds, which makes Reynolds Wrap aluminum foil, had initially offered $25 per share for Graham, maker of containers for items such as salsa, chocolate syrup and laundry detergent. Stamford, Conn.-based Silgan had until the end of Thursday to make a better offer for Graham. In April, the maker of shampoo bottles, bottle caps and other packaging products had offered a cash-and-stock deal that was worth $19.56 per share at the time. Graham said Friday it had signed a definitive buyout agreement with Reynolds. Silgan is entitled to receive a $39.5 million breakup fee, however. Graham said the deal with Reynolds is valued at approximately $4.5 billion, including debt.

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