Dart Container Corp., Solo Cup Co., food service, food container, beverage container, foodservice container, packaging products, plastic cup, paper cup
MASON, MI -- Dart Container Corp. has agreed to buy Solo Cup Co. in a deal valued at $1 billion. Dart will pay $315 million in cash and assume $700 million of Solo's debt. The transaction is subject to regulatory approval and is expected to close by the third quarter.
Mason, MI-based Dart is widely regarded as the world's largest maker of foam cups; it produces some 600-plus single-use foodservice containers and packaging products. The company said the addition of Solo would broaden its product range and the types of materials from which they are made.
Lake Forest, IL-based Solo Cup makes disposable food and beverage containers out of paper, plastic and recycled materials. It was founded in 1936 as a paper container company. Dart said it plans to continue to market many products under the Solo brand, including its iconic red plastic cups.
Solo Cup is owned by the family of its founder, Leo Hulseman, along with private equity firm Vestar Capital Partners. It had $1.6 billion in sales in 2010. Dart was founded in 1960 and remains family owned and operated. The two companies will operate independently until the deal closes.