Global food packaging company Sabert Corp. said Monday it entered a definitive agreement to acquire LBP Manufacturing LLC, a provider of paper-based environmentally friendly and sustainable food and beverage packaging.
Sayreville-based Sabert said the addition will boost its annual sales over $900 million, and create a team of 3,000 employees worldwide. The deal is expected to close in early December, subject to customary closing conditions.
Chicago’s LBP is well-known for its hot beverage packing in particular, Sabert said, like the Coffee Clutch hot cup sleeve and Beverage on the Move insulated to-go carrier. Other products include catering trays, folding cartons and clamshells.
“LBP’s customer-centric culture and superior track record of developing performance-driven products that respond to their customers’ needs makes them a great fit to join our organization,” Sabert founder and CEO Albert Salama said in a prepared statement. “As a leader in paper-based packaging, LBP’s strong position in the Quick Service Restaurant channel combined with Sabert’s sales network and global presence will allow the new organization to deliver tremendous value to the market, enabling us to achieve our vision of being the most admired company in our industry.”
LPB Chief Executive Officer Matt Cook described the move as a great opportunity for the company’s team and customers.
Financing for the deal was committed by JPMorgan Chase Bank NA, Wells Fargo Securities LLC, SunTrust Robinson Humphrey Inc. and Nomura Securities International Inc., according to Sabert. JPMorgan will also serve as exclusive administrative agent for the financing.
Mesirow Financial served as Sabert’s exclusive financial advisor, with Gibbons PC providing legal guidance. According to the company, Rothschild & Co. and Lazard serves as LBP’s exclusive financial advisors.
Sabert operates facilities in the Garden State, as well as in California, Indiana, Kentucky and a facility to open in Texas in 2020. Globally, the company has manufacturing facilities in Belgium and China. LBP has manufacturing facilities in the U.S., Poland and China.