Acquisitions

3 Months Ended

Mar. 31, 2012

Acquisitions

Acquisitions

Note 4 — Acquisitions

Shield Pack

On December 1, 2011, the Company acquired the common stock of Shield Pack, LLC, a Louisiana manufacturer of high barrier liners for bulk container packaging.  The acquisition supports new market applications for bulk liquids and other products requiring barrier packaging.  The preliminary purchase price of approximately $44.5 million was paid in cash and is subject to customary post-closing adjustments.  The preliminary purchase price allocation resulted in goodwill of approximately $24.9 million.  The preliminary fair value of assets and liabilities acquired was $56.2 million and $11.7 million, respectively.

Mayor Packaging

On August 1, 2011, the Company acquired Mayor Packaging, a privately-owned manufacturer of consumer and specialty flexible packaging including a manufacturing facility in Dongguan, China.  The acquisition supports the Company’s strategy to enhance its presence in the Asia-Pacific region.  The purchase price of approximately $96.7 million was financed with commercial paper and is subject to customary post-closing adjustments.  Under the terms of the agreement, the Company may be required to make additional payments to the sellers of up to $13 million over three years if certain conditions are met.  These payments are recorded as compensation expense within selling, general and administrative expenses in the period accrued based on the likelihood of achieving these milestones.  The allocation of the purchase price resulted in approximately $42.6 million of goodwill.  The fair value of assets and liabilities acquired was $116.8 million and $20.1 million, respectively.