Subsequent Event (Notes)

6 Months Ended

Jun. 30, 2015

Subsequent Events [Abstract]

Subsequent Events

Subsequent Events

In accordance with the equipment lease agreement associated with the Company's spunmelt manufacturing line constructed in Waynesboro, Virginia during 2011, the Company has the right to acquire the leased equipment for a stated amount in the contract at two specific dates during the lease term. At either date, the Company has the option to purchase all (but not less than all) of the lease assets for an amount equal to the greater of: (i) the stated percentage of the lease amount along with all rent, taxes and other amounts due under the lease through the early buy-out date; and (ii) the then fair market value of the leased equipment. On July 22, 2015, the Company exercised its right under the agreement and notified the lessor of its intention to acquire the leased assets. Per the agreement, the early buy-out cost was determined to be $32.7 million (the then fair market value of the leased equipment) which will be paid during the fourth quarter of 2015.

On July 31, 2015, Holdings announced that it had entered into a merger agreement pursuant to which a subsidiary of Berry Plastics Group, Inc. (“Berry Plastics”) would merge with and into AVINTIV Inc., with AVINTIV Inc. surviving the merger.  The merger consideration is approximately $2.45 billion in cash on a debt-free, cash-free basis. The proposed transaction, which is subject to customary closing conditions, is expected to close by the end of calendar year 2015. Berry, a company traded on the New York Stock Exchange, is a leading global manufacturer and marketer of value-added plastic consumer packaging and engineered materials. Headquartered in Evansville, Indiana, they serve over 13,000 customers, ranging from large multinational corporations to small local businesses.