Constar to sell its US assets to Amcor Rigid Plastics USA

TREVOSE, Pennsylvania,USA –  Constar International Holdings LLC said it has entered into a stalking horse asset purchase agreement with packaging leader Amcor Rigid Plastics USA. Under the terms, Constar will sell all of its domestic business to Amcor. To complete the transaction, Constar and some of its subsidiaries filed for Chapter 11 bankruptcy protection in the District of Delaware on 19 December 2013. The transaction with Amcor, which may be completed by the first quarter of 2014, is being undertaken pursuant to Section 363 of the US Bankruptcy Code and is subject to higher and better offers and approval of the Bankruptcy Court, as well as other customary closing conditions.

Constar continues to operate and serve its blue-chip customer base and all employees are being paid in the ordinary course of business. “The transaction with Amcor will allow Constar and its employees to continue to provide valuable products and services to our customers and expand our offering and capabilities by leveraging the financial and other resources of Amcor. We are very excited for our employees and customers and believe this transaction creates a stable and extremely viable long term partner for our customers and vendors,” said Louis S. Imbrogno, Jr., interim CEO of Constar.

Constar also continues to operate and serve its customers in Europe. It is also evaluating the sale of its European operations to one or more third parties and will make further announcements in the future as that process unfolds.

Inquiries related to potential purchase of the European business or the auction process for the US assets should be directed to Michael Son of Lincoln International LLC, Constar’s investment banker and financial advisor at either 213.283.3707 or mson@lincolninternational.com.

Constar, which is based in Trevose, Pennsylvania, is a global producer and supplier of plastic bottles, jars and preforms for food and beverages, and provides full-service packaging solutions, from product design and engineering, to ongoing customer support and material licensing agreements.