Solo Cup to buy SF Holdings, its Sweetheart unit

December 23, 2003|By BLOOMBERG NEWS

Solo Cup Co., a closely held maker of plastic and paper cups and plates, agreed yesterday to acquire competitor SF Holdings Group Inc. and its Sweetheart Cup unit for an undisclosed amount.

The sale also includes the Hoffmaster napkins and Fonda Brands plate businesses, the companies said in statements.

Owings Mills-based Sweetheart had sales of $1.3 billion and 7,442 employees in the fiscal year that ended in September.

Highland Park, Ill.-based Solo gets to expand its line of packaging for restaurant chains including McDonald's Corp. and food companies such as Ben & Jerry's. Solo and Sweetheart, which is also closely held, compete with International Paper Co. and Georgia-Pacific Corp. The transaction is expected to close in the first quarter.

Jefferies and Co. advised Sweetheart on the sale. Banc of America Securities and Citigroup Global Markets advised Solo.

All of Sweetheart's outstanding notes will be repurchased or redeemed, and Solo said Vestar Capital Partners will make an investment in the company because of the acquisition.

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