Greif, a major player in industrial packaging products and services, has recently announced its acquisition of Reliance Products.
This significant development marks Greif's expansion into the high-performance barrier and conventional blow moulded jerrycan and small plastic container market in Canada.
The transaction, conducted entirely in cash, was funded through Greif's existing credit facility and reflects approximately 6.75 times the proforma adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA) of Reliance Products.
Strategic location and unique technology
Reliance Products, headquartered in Winnipeg, Canada, operates from a single location strategically positioned to serve primary agriculture markets in North America.
Notably, the company utilises an innovative in-mould fluorination barrier (IMF) process, enhancing Greif's portfolio of barrier technologies.
This acquisition complements Greif's recent purchase of Lee Container, expanding its geographical reach and introducing a new barrier technology to its offering of jerrycans and small plastic containers.
Positive outlook and future growth
Ole Rosgaard, president and chief executive officer of Greif, expressed enthusiasm about the acquisition, stating:
"The acquisition of Reliance is a compelling bolt-on to our recently acquired Lee Container business and adds geographic breadth and an exciting new barrier technology to our jerrycan and small plastic container offering."
The bodtker group of companies chairman Nils Bodtker also shared his thoughts on the acquisition:
"We have greatly enjoyed our decade-long partnership with Reliance, and we offer our heartfelt thanks to the hard-working and dedicated members of the Reliance team.”
Future reporting and earnings call
The financial results of Reliance Products will be consolidated within the Greif Global Industrial Packaging segment.
Greif anticipates providing further details regarding the acquisition and its impact on future operations during the 2023 fiscal fourth-quarter earnings call scheduled for 7 December 2023.
