The Dart Container Corporation recently announced it will acquire the Solo Cup Company in a transaction worth approximately $1 billion.
The transaction, which is subject to regulatory approval, is expected to close by the third quarter of this year. Both companies are in the consumer and foodservice disposable packaging business.
Solo Cup Company is a $1.6 billion company started in 1936. Solo Cup’s Conyers plant started in 1967 as a Sweetheart Plastics plant and today employs about 380 people. Solo Cup also has a distribution center in Social Circle that employs about 60 people, and manufacturing plants in Augusta and Thomaston, Ga.
Dart Container Corporation, a privately owned company started in 1960, also has a manufacturing plant in Lithonia. Worldwide, the company has about 20 production facilities and employs about 7,600.
Solo Cup Director of Communications Angie Gorman said "Dart has said they don’t anticipate making any dramatic changes in the first six to 12 months following government approval and deal close. However, they will begin to implement decisions focused on their goal of providing customers with the products, services and support they demand, and strengthening Dart for the long term."
She noted a number of factors go into the decision on how a company configures its manufacturing network. "Geographic location and proximity to another facility are just two of many considerations and they may not be the most important ones."
“Our acquisition of Solo will allow us to provide even greater value to our customers in the future,” said Dart Container CEO Robert C. Dart. “It will enable customers to purchase a wider range of products, made from a greater variety of materials with varying functional and environmental attributes — all from a single vendor. Both companies have an extensive history in the industry and will bring together valuable experience, traditions and complementary, high-quality products.”
“Solo has made great strides over the past several years in improving its operating efficiency, information systems and the caliber of the talent within the organization,” said Robert M. Korzenski, CEO, Solo Cup Company. “Dart’s leadership team has shown a high level of respect for what Solo has accomplished and I believe we are putting the company in the right hands to succeed and grow going forward.”
Michigan-based Dart Container Corporation and Illinois-based Solo Cup Company will continue to operate independently until government approval is secured and the transaction closes.
