Pregis Announces Sale of Hexacomb Business to Boise Inc.
The proceeds from the transaction will be used to repay a portion of Pregis’ asset-based lending facility and will be otherwise retained for debt repayment, general corporate purposes, and future reinvestment.
Oct 7 2011 --- Pregis Corporation, a leading international manufacturer, marketer, and supplier of protective packaging products and specialty packaging solutions, announced today that it has entered into a definitive purchase agreement to sell its Hexacomb business unit to an affiliate of Boise Inc. for $125 million. Sales of the Hexacomb business for the twelve months ended August 31, 2011 were $109.8 million, with EBITDA (before unallocated corporate expenses) of $13.2 million. The proceeds from the transaction will be used to repay a portion of Pregis’ asset-based lending facility and will be otherwise retained for debt repayment, general corporate purposes, and future reinvestment.
Hexacomb is a leading supplier of paper-based protective packaging and serves key industries which value product protection coupled with environmental sustainability. This includes furniture, consumer, automotive, textile, food, building products, energy, glass, and industrial. Hexacomb has twelve manufacturing plants, with nine in North America and three in Europe.
Commenting on the transaction, Glenn Fischer, President and Chief Executive Officer of Pregis, stated, “I am pleased to announce the sale of our Hexacomb business. Jeff Kellar and his team have done an excellent job over the past few years in transforming Hexacomb into a dynamic, growth oriented company. The sale of Hexacomb is part of Pregis’ objective to optimize our overall business unit portfolio. I am confident that Hexacomb will continue to thrive under Boise’s ownership”.
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