Dart Container Corporation announced it reached an agreement to purchase Solo Cup Company. Dart Container is a leading manufacturer of foam cups and other foodservice products. Solo Cup Company manufactures single-use foodservice products as well. The addition of Solo will broaden Dart’s product offerings and the raw materials used.
The transaction is valued at $1 billion. Dart would pay $315 million in cash and assume approximately $700 million of Solo’s debt. The deal is subject to government approval, but is expected to close by the third quarter of this year. Until the deal closes, the companies will operate independently. After they are integrated, Dart does plan to continue selling Solo-branded products, including the red cups.
“Dart Container’s acquisition of Solo will accelerate the progress Solo has made to improve its levels of service and customer support,” said Robert Dart, CEO of Dart Container. “We will use our expertise in running a successful, efficient, reliable and service-oriented company to create an organization that blends the best of both Dart and Solo for the benefit of our customers.”