LANCASTER, Pa., June 26, 2003
Kerr Group, Inc. (“Kerr” or the “Company”), a leading provider of
specialty plastic closures and containers to the pharmaceutical,
healthcare and food and beverage industries, today announced it has
reached an agreement to acquire substantially all the operating assets
of Setco, Inc. (“Setco”) and Tubed Products Inc. (“Tubed Products”),
both wholly owned subsidiaries of McCormick & Company Incorporated
(“McCormick” NYSE: MKC). Additionally, the Company has entered into a
multi-year supply agreement with McCormick.
Setco and Tubed Products develop, manufacture and market high quality
custom and stock plastic bottles, plastic squeeze tubes, and plastic
closures for the vitamin, pharmaceutical, food and spice, and personal
care markets. The acquisition of Setco and Tubed Products strengthens
Kerr's position as one of North America's top specialty plastic
packaging companies and diversifies its plastics packaging portfolio.
“The complementary nature of these businesses in terms of customer base
and products creates substantial prospects for synergies and will bring
to our customers a broader array of products and services. The
opportunities we have identified for efficiencies and growth as a result
of this combination make it a compelling transaction. Kerr is looking
forward to the partnership with the management and employees of both
Setco and Tubed Products to rapidly achieve mutual goals,” said Richard
D. Hofmann, President and CEO of Kerr Group, Inc.
The transaction is subject to the Hart Scott Rodino clearance and other
customary closing conditions. Kerr and McCormick expect the transaction
to close during the third quarter of 2003.
About Setco, Inc. and
Tubed Products Inc.
Setco and Tubed Products have approximately 1,400 employees in plant
locations in Anaheim and Oxnard, California; Monroe Township, New
Jersey; and Easthampton, Massachusetts.
About Kerr Group, Inc.
Kerr designs
and manufactures highly-engineered, proprietary, injection and
compression molded plastic closures and containers that incorporate
functional features such as child-resistance and tamper-evidence. Kerr
is a recognized market leader in technological innovation and
proactively works with its customers to design and manufacture closures
and containers to serve specific product needs. In the pharmaceutical
market, Kerr partners with its customers in designing packaging which
meets or exceeds the requirements of the Food and Drug Administration
and the Consumer Product Safety Commission. Kerr is majority-owned by
Fremont Partners, a San Francisco-based private equity firm
www.fremontpartners.com.
For more information
about Kerr Group, visit the Company’s website at
www.kerrgroup.com.
About McCormick &
Company, Inc.
McCormick & Company, Inc. is the global leader in the manufacture,
marketing and distribution of spices, seasonings and flavors to the food
industry, to food service and food processing businesses, as well as to
retail outlets.
For more information
about McCormick, visit the Company’s website at
www.mccormick.com.
SOURCE Kerr Group, Inc.
