Berry Plastics Corp. has announced that it will acquire more than 99.99% of the common stock of Pliant Corp. upon Pliant's emergence from bankruptcy. Pliant Corp. operates 18 manufacturing facilities across the globe, employs 2,900 people and recently posted annual net sales of $1.1 billion.
Under the proposed deal, Berry is entitled to as much as 25% of the common equity of Pliant. Berry also intends to acquire the remaining 75% of the common stock available under the plan.
Upon receipt of financing and regulatory approvals, Berry will operate Pliant as a separately capitalized, unrestricted operating division of Berry. The transaction is anticipated to close by the end of the year.