Greif, Inc. (NYSE: GEF, GEF.B), a global leader in industrial packaging products and services, announced today it has acquired Reliance Products, Ltd. ("Reliance Products" or "Reliance"), a leading producer of high-performance barrier and conventional blow molded jerrycans and small plastic containers in Canada. The all-cash transaction, which reflects approximately 6.75x proforma adjusted EBITDA, was funded through Greif's existing credit facility.
With a single operating location in Winnipeg, Canada, Reliance's operations are strategically located to serve the primary agriculture markets in North America. Reliance products utilize a unique in-mold fluorination barrier (IMF) process which provides a compelling additional capability to the Greif portfolio of barrier technologies.
"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."
Nils Bodtker, Chairman of The Bodtker Group of Companies commented: "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."
The results of operations for Reliance will be reported within the Greif Global Industrial Packaging segment. Additional information on the acquisition and its expected impact on go-forward operations will be discussed as part of our 2023 fiscal fourth quarter earnings call scheduled for December 7, 2023.