Greif Acquires Blagden Packaging


Diversified container maker Greif Inc. has announced an agreement to purchase Blagden Packaging Groups steel drum manufacturing and closures divisions in Europe and Asia, which had net sales of $265 million on an annualized basis.

Greif (which rhymes with life) did not disclose terms of the deal, which the company anticipates will close in its first quarter of fiscal 2007. Greifs fiscal year began Nov. 1.

In September, Greif purchased lubricant compounder and packager Delta Petroleum Co. from an investment firm. The move constituted a rare venture by a packaging manufacturer into lube blending, as Greif continued its efforts to diversify as a packaging company.

Greif Communications Director Deb Strohmeier said its not clear what impact the Blagden acquisition will have in relation to Delta Petroleum. Strohmeier said her understanding is that Greif will not retain the Blagden name in the long term.

The acquisition has synergies with our existing steel drum and closures business, said Strohmeier. Synergies with Delta – providing geographic opportunities – are to be determined.

By adding Blagdens steel drum and closures business to Greifs existing footprint, our customers can be assured of a continued optimal and cost-effective supply of packaging material for the future, said Ivan Signorelli, senior vice president for Industrial Packaging and Services – Europe for Greif.

Greif, headquartered in Delaware, Ohio, manufactures steel, plastic and fiber drums, corrugated cardboard and other paper packaging products, and claims to be the worlds leading provider of industrial packaging products and services. It also manages timber assets in North America and has annual revenues of $2.4 billion.

Blagdens acquired operations, which produce new drums, have 820 employees in the Netherlands, Belgium, France, the United Kingdom, Spain, Singapore, Malaysia and China.

In the future, Blagdens remaining operations will focus on collection, reconditioning and recycling of industrial packaging around the world as well as production of steel and tinplate pails and cans inthe Netherlands. Blagden is headquartered in Rumbeke, Belgium.

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