Solo Cup Company, a provider of single-use products used to serve food and beverages, today announced that it has entered into a stock purchase agreement to acquire InnoWare Plastic, Inc., a Georgia-based manufacturer of a comprehensive line of take-out containers. Solo will acquire InnoWare Plastic for $24 million in cash from InnoWare, LLC. InnoWare, LLC is a manufacturer of disposable foodservice products owned by Norwest Equity Partners, a Minneapolis-based middle market private equity investor. The closing of the acquisition is scheduled for today.
“Take-out is an important growth platform for Solo’s customers,” says Robert M. Korzenski, president and chief executive officer of Solo Cup Company. “The acquisition of InnoWare Plastic, which we expect to contribute positively to earnings this year, will enhance our existing take-out offerings and expand the base upon which we can accelerate growth via our existing distributor and operator relationships.
“This transaction also represents an important milestone for Solo. Our work in recent years to right-size and refinance our company has successfully repositioned Solo for growth. We leveraged that position today with the addition of this important product line to Solo’s portfolio.”