Business News

BWAY HOLDING COMPANY ANNOUNCES THE SIGNING OF A DEFINITIVE AGREEMENT TO ACQUIRE PLASTIC PACKAGING BUSINESS AND UPDATES FISCAL 2009 GUIDANCE

Wednesday 14. October 2009 - BWAY Corporation, the principal operating subsidiary of BWAY Holding Company (NYSE: BWY), a leading North American supplier of general line rigid containers, today announced that it has signed a definitive asset purchase agreement to acquire Ball Corporation's (NYSE: BLL) injection molded plastic pail plant and business located in Newnan, GA.

The Company will pay approximately $32 million for the business, subject to customary post-closing adjustments. The acquisition is expected to be closed by the end of October, and funded with available cash on hand.

Commenting on the pending acquisition, Ken Roessler, BWAY’s President and Chief Executive Officer stated that, “This business is an excellent fit with the Company’s core market add-on acquisition strategy. In addition to sales and market share growth, this acquisition provides further product portfolio expansion through the addition of well established screw top pail designs which supports the Company’s goal of positioning BWAY as the premier supplier for rigid general line packaging. We expect to realize significant synergies, including potential future plant rationalizations.”

Separately, the Company reported that it expects fourth quarter and full year adjusted EBITDA and EPS to be at the high end of the guidance range provided on August 5, 2009. Adjusted free cash flow is expected to exceed $50 million, compared to August 5 guidance of $46-$48 million.

Finally, the Company stated that it will provide fiscal 2010 earnings and cash flow guidance in late October, following the close of the pending acquisition.