Delaware, Ohio based Greif, Inc. has announced it has entered into an agreement to acquire Lee Container Corporation, Inc., a manufacturer of high-performance barrier and conventional blow molded containers, for $300 million. The purchase price is before taking into consideration the tax benefits which has an estimated net present value of approximately $30 million.
The all-cash transaction will be funded through Greif’s existing credit facility and is expected to close by the end of the calendar year.
Lee Container is a leader in the North American blow molded jerrycan industry, primarily serving growth-oriented customers in the agrochemical, other specialty chemical, oil and lubricant, and pet care segments. Lee Container operates three manufacturing facilities in Homerville, Georgia; Centerville; and Nacogdoches, Texas, with over 500 employees throughout the U.S.
For the last 12 months ending September 30, 2022, Lee generated sales of $162 million and adjusted EBITDA of $33 million. As part of the acquisition Greif also expects to realize approximately $6 million in synergies within the first two years of ownership.
“The acquisition of Lee Container is a critical step in our continued Build to Last journey,” said Ole Rosgaard, President and Chief Executive Officer of Greif. “Lee is an exceptional strategic and cultural fit, with exceptional people and values as well as a favorable mix of product and end market exposures.