Ropak Submits Formal Offer to Acquire Vulcan Packaging

Ropak Corp., a plastic-packaging firm in Fullerton that is attempting to purchase Toronto-based Vulcan Packaging, has formally submitted its $28-million cash and stock offer to Vulcan’s board of directors.

Last week, Ropak announced its intention to seek a friendly acquisition and met with Vulcan’s board in Toronto.

“They were very receptive. We might know whether we got it later in the week,” said Ropak Chairman William H. Roper.

A group of Vulcan managers also is interested in acquiring the plastic and steel container maker, which has retained an investment banking firm to determine its value.

Roper said he believes that his offer provides more secure financing than a leveraged buyout by management. Ropak’s offer, which Roper revealed Monday, includes $14 million in cash and $14 million of a newly created Ropak preferred stock.

The purchase of Vulcan would double the size of Ropak, which last year had revenues of $69 million.

Ropak, which last year lost a bitter and costly proxy battle to acquire an Ohio packaging firm, said it will not pursue Vulcan if the company’s board rebuffs Ropak’s offer.