The transaction follows a $33-million sale-leaseback CPA(R):15 completed with Berry Plastics in 2003 and includes its headquarters and largest production facility in Evansville, IN, a manufacturing facility in Baltimore, and a facility in Lawrence, KS. All facilities are being leased back to Berry Plastics on a long-term basis.
Harris tells GlobeSt.com that this is the third transaction that WP Carey has completed with Berry Plastics, and the proceeds were used to finance a small add-on acquisition that they closed in conjunction with the sale-leaseback. "The timing of the transaction was driven by this add-on acquisition, and was not impacted by market conditions."
Harris continues that "Berry is a very important tenant of ours and we were excited to be able to complete another transaction with them and meet their timeframe. Over our 35-year history we have excelled in periods of market distress, and we expect the coming years to present lots of great opportunities for our investors."
Berry Plastics is a leading manufacturers and suppliers of a diverse mix of plastic packaging products including open top containers, closures, aerosol overcaps, drink cups, prescription vials, flexible packaging, tapes and specialty coated products. Berry Plastics sells a broad range of products to over 13,000 customers including McDonald's, Procter & Gamble, Hershey, Coca-Cola, Wal-Mart and Bayer as well as smaller specialty businesses. Berry Plastics is majority owned by private equity sponsor Apollo Management.
"We are happy to be working with WP Carey again," notes Ira Boots, chairman and CEO of Berry Plastics, in a prepared statement. "The sale-leaseback of these three facilities allowed us to raise funds for an add-on acquisition. We look forward to working with WP Carey on future projects down the road."
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Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com and GlobeSt. Real Estate Forum, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
