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Plastipak Packaging wins Constar auction

By Jenny Eagle+

10-Feb-2014
Last updated on 10-Feb-2014 at 11:31 GMT

Plastipak Packaging
Plastipak Packaging

News has emerged Plastipak Packaging based in Michigan, US, was the successful bidder against Amcor for Constar International Holdings (Constar).

Court documents state the deal is subject to approval by the US Bankruptcy Court in Delaware today (February 10).

Plastipak will reportedly pay $102.45m for Constar's assets.

Amcor bid squashed

FoodProductionDaily.com reported last week Amcor was not successful in acquiring Constar.

Constar said at the time, the transaction was subject to higher and better offers and approval of the Bankruptcy Court, as well as other customary closing conditions.

Both Plastipak and Atlanta-based CKS Packaging filed objections with the court over the rules Amcor and Constar had set up for the sale.

Constar had planned to sell most of its assets in two separate auctions, one for its US assets and another for assets or stock of affiliates in the UK and the Netherlands. It is one of the largest suppliers of PET containers for soft drinks and water throughout North America and Europe.

Close call

Plastipak allegedly won the auction with an offer of $102.45m. Amcor, which kicked the bidding off at $68.5m, stopped at $102.1m.

"Amcor has a well-defined returns focus for investments and will remain disciplined in its approach to acquisitions," Amcor said in a statement.

"Constar went into bankruptcy and part of the process was for liquidators to establish the best possible price."

Plastipak is expected to continue operations at the company's plant, which produces plastic food and beverage containers.

Plastipak Packaging

Plastipak is buying the US operations, which employed 470 people as of the time the company sought bankruptcy protection last year.

Separately, Constar has agreed to sell its Havre de Grace, Maryland, plant to food company J.M. Smucker Co. of Ohio for $3.1m. Assets in the UK and Netherlands are also being auctioned off as the company tries to pay its bills.