The deal gives distressed asset buyer a big win in the CPG industry

Cerberus Capital Management announced that one of its affiliates has entered into a definitive agreement to buy assets from Reynolds Group. The private equity giant will acquire the North American, Costa Rican, and Japanese businesses and related facilities of Closure Systems International.

Cerberus Capital Management Buys CSI

The acquired businesses of Closure Systems International provide closures for a wide variety of bottles and containers. The firm is the largest producer of closures in North America. In 2018, CSI sold over 56 billion closure systems globally. Its customers include some of the world’s largest consumer packaged goods and packaging companies.

In addition to closure systems, CSI provides high-speed beverage closure application equipment and technical consulting services. Reynolds Group will retain and continue to operate closures businesses in Europe, the Middle East, Egypt, and South America. Terms of the Cerberus Capital Management deal did not appear in the press release.

“We are pleased to welcome Cerberus [Capital Management] as our new long-term partner,” said Floyd Needham, President and CEO of CSI. “Through our consistent focus on innovation, reliability, and quality, CSI has become a leader in the packaging industry with a world-class customer base. Cerberus brings a wealth of financial, operating, and industry expertise to this exciting new partnership, and we are confident that together we will be able to drive CSI’s next phase of growth.”

[Related: Private Equity Firm KKR Snaps Up Campbell’s International Business for $2.2 billion]