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Platinum Equity to acquire BWAY for $1.24bn

North American supplier of general line rigid containers BWAY Parent Company through its primary operating subsidiary BWAY has entered into an agreement to be acquired by equity investment firm Platinum Equity for $1.24bn.

Under the terms of the agreement, the US-based Platinum Equity through a merger will acquire BWAY Parent Company from funds managed by Madison Dearborn Partners.

BWAY president and chief executive officer Ken Roessler said Platinum brings an operational and strategic focus and a track record of value creation to BWAY.

"We look forward to taking the next step in the evolution of our company," Roessler said.

The transaction, which is subject to customary closing conditions is expected to close in the fourth quarter of 2012. It will be financed through a combination of equity given by Platinum Equity along with certain members of management and debt financing provided by Bank of America Merrill Lynch and Deutsche Bank.

BWAY operates 22 plants throughout the US and Canada serving industry customers on a national basis.