Berry Global announced that it has entered into a definitive agreement to acquire the Clopay Plastic Products Company, Inc., a subsidiary of Griffon Corporation, for $475 million in cash on a debt-free, cash-free basis.

Clopay is a global supplier of printed breathable films as well as an innovator in the development of elastic films and laminates with product offerings uniquely designed for applications used in a number of markets including; hygiene, healthcare, construction and industrial protective apparel. Clopay has nearly 1500 employees with a footprint serving markets across the globe with locations in the United States, Germany, Brazil, and China. Clopay delivered $461 million in sales and $53 million in operating EBITDA for its fiscal year ended September 30, 2017. Berry Global expects annual cost synergies to be approximately $20 million. The purchase price, including its expected cost synergies along with the tax basis step-up value, represents an adjusted EBITDA multiple of below six times.

“The proposed acquisition of Clopay is directly aligned with our fundamental strategic initiatives,” says Tom Salmon, CEO of Berry. “We are extremely excited with what Clopay’s global capabilities and unique technology platform will add to our organization. The combination of Clopay with Berry’s Health, Hygiene, and Specialties division broadens our position within the faster growing health and hygiene markets. Clopay will bring Berry new capabilities in the production of technical films, where they are a known innovator with patent protected breathable hygiene films.”

Berry says together the companies will be able to optimize complementary production capacities, reduce material and conversion costs, and better serve customers from an expanded global footprint with a portfolio of products that is one of the most comprehensive in the industry.

The aquisition will also increase Berry’s position within the faster growing health and hygiene markets using innovative patent protected technologies.

Berry expects to realize cost synergies in line with previous Berry acquisitions of a similar nature.

The transaction is expected to be completed in early 2018, subject to customary closing conditions, including applicable regulatory approvals. Berry intends to fund the acquisition with existing liquidity or additional debt offering.