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Reynolds completes acquisition of Graham Packaging

By , - Last modified: September 12, 2011 at 9:02 AM

York County-based Graham Packaging Co. Inc. now is an indirect, wholly owned subsidiary of New Zealand-based Reynolds Group Holdings Ltd. after Reynolds completed its planned acquisition of Graham late last week.

Graham's shareholders will receive $25.50 per share of common stock in keeping with the terms of the acquisition agreement, according to a filing with the Securities and Exchange Commission.

Parties to the merger also requested the New York Stock Exchange move to delist Graham. The company went public in February 2010.

Graham and Reynolds Group reached an acquisition agreement in June for a purchase price of about $25.50 per share. Graham concurrently backed out of a previous agreement with Connecticut-based Silgan Holdings Inc. that included an estimated purchase price of $19.56 per share.

The $4.5 billion agreement with Reynolds included assumed indebtedness and was increased by about 50 cents per share in consideration of a material shortening of a deadline to receive consent from one of the parties for the acquisition, Graham said.

Graham Packaging makes plastic containers for a variety of industries and has nearly 100 facilities worldwide. Shares of Springettsbury Township-based Graham Packaging had been traded on the New York Stock Exchange under the ticker symbol GRM.

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