"We are extremely pleased with this acquisition of certain assets and intellectual property," stated Plastipak's Chief Commercial Officer (CCO) Frank Pollock, in a news release. "We extensively analyzed the sites, machinery, and intellectual property, and evaluated the organizational strengths of Constar's operations, and as a result we are confident that this transaction will enable us to better serve our existing and future customers." He added that Constar's talent and technology will allow Plastipak to bring to its valued customers a complete portfolio of solutions to meet their current requirements and tomorrow's challenges.
The transaction is subject to customary closing conditions, including regulatory approval, and is expected to close in the first quarter. Upon closing, Constar sites will be operated under Plastipak ownership.
"We continue to improve our organizational capabilities to earn the confidence and loyalty of our customers in all the categories we serve. This includes investments in packaging that address changing consumer demands and lifestyles. We're excited, and welcome the Constar associates to our organization. We appreciate their efforts and the contributions of Constar's leadership team during this important transition," said Plastipak CEO William Young.
This was the third bankruptcy filing since 2008 for Constar, which listed assets of as much as $100 million and debt as high as $500 million according to U.S. Bankruptcy Court papers. The largest unsecured creditors listed in the bankruptcy filing include DAK Americas and DAK Resinas de Mexico, owed more than $15 million, and Britvic Soft Drinks Ltd. of London, which is owed $5.43 million, PlasticsToday reported in December.
Constar is a major producer of PET bottles and containers including barrier and hot-fill technology. In 2013, Constar obtained six new patents related to its Diamond Clear Oxygen Scavenging technology for PET packaging. A proposed buyout offer from Amcor Rigid Plastics USA was made for $68.5 million.
Plastipak won with an offer of $102.45 million and Amcor stopped at $102.1 million, according to a report in the Wall Street Journal.