Greif, Inc., a globally recognized figure in the realm of industrial packaging products and services based in Delaware, has recently made headlines with its acquisition of Reliance Products, Ltd., known for its top-notch barrier and conventional blow molded jerrycans and small plastic containers predominantly in the Canadian market.
The all-cash transaction, marked at about 6.75 times the proforma adjusted EBITDA, was smoothly facilitated through Greif’s pre-existing credit facility. This acquisition is not only a testament to Greif’s continuous stride towards diversification but also a significant expansion in the geographical and technological domain.
Reliance’s Prime Locale
Operating from Winnipeg, Manitoba, Canada, the operational base of Reliance Products is considered to be strategically placed to cater to the primary agriculture markets sprawling across North America. The uniqueness of Reliance’s offerings lies in its innovative in-mold fluorination barrier (IMF) process, which now adds a fascinating dimension to Greif’s already extensive portfolio of barrier technologies.
Augmenting the Jerrycan Collection
“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,” said Ole Rosgaard, President and Chief Executive Officer of Greif. “Reliance has built a strong business serving the Canadian market under the guidance of The Bodtker Group, and we intend to build on their technical expertise to unlock even more potential and growth.”
A Decade of Accomplishments
Nils Bodtker, the Chairman of The Bodtker Group of Companies, reminisced about the rewarding decade-long partnership with Reliance and expressed gratitude towards the dedicated team at Reliance. “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. They should be very proud of all we accomplished together. While we will miss the Reliance family, we are excited for the company’s future as our employees and customers join Greif, a world-class organization that we have known and respected for many years.”
Implications on Greif’s Operations
Reliance’s operational outcomes will now be enveloped under the Greif Global Industrial Packaging segment. More detailed discourse regarding the acquisition and its projected influence on the operations moving forward is slated for discussion in the upcoming 2023 fiscal fourth quarter earnings call on December 7, 2023.
Reliance’s Noteworthy Portfolio
With its headquarters nestled in Winnipeg, Manitoba, Canada, Reliance has carved a niche for itself as a leading manufacturer of plastic containers catering to some specialty markets across Canada and the United States. Its reputation as a premier North American supplier of packaging for crop protection chemicals is well-acknowledged, and its growing foothold in the industrial chemicals packaging sector is noteworthy. Moreover, Reliance’s rugged water containers have found favor among outdoor enthusiasts for over five decades, showcasing a blend of quality and utility.