Solo buys InnoWare Plastic for $24 million

Solo Cup Company (Lake Forest, IL) has acquired take-out container manufacturer InnoWare Plastic Inc. (Thomaston, GA) in a stock-purchase agreement valued at $24 million. Solo, which manufactures single-use products to serve food and beverages, purchased the maker of disposable foodservice products from its private equity investor, Norwest Equity Partners (Minneapolis, MN).

In January, InnoWare LLC (Menomenee Falls, WI) announced that its board chairman, Nicholas A. Clementi, would become company CEO. Clementi took over for Charles Woodward, who resigned as CEO and president. InnoWare's operating companies include InnoWare Paper of Wisconsin and InnoWare Plastics of Georgia. Of late, InnoWare had promoted sustainable packages, adding two "green" material options to its OctaView line of take-out food containers in May 2009. The containers were made available in PETE and bio-based resin versions, working with starch-based bioplastic supplier, Cereplast. For its part, Solo launched a compostable cold cup and PLA-lined hot cup in 2009.

In June 2009, Solo announced that it was pursuing alternatives to address the maturity of the company's existing senior credit facility, which included a revolving facility that expires in 2010. The company was weighing an asset-based lending facility and secured or unsecured notes. It eventually completed the private placement of $300 million of senior secured notes due 2013.