There will be a lot of these sorts of stories in the coming months -- but this one is from the Walton (GA) Tribune -- do go read it all:. . .Just a few months have passed since the Solo Cup Distribution Center in Social Circle marked its five-year anniversary. . . But with the announcement last week Solo Cup was being purchased by Dart Container Corp., there are no guarantees about the facility’s future. . . “With regard to the impact on the Solo Distribution Center in Social Circle, the number and location of manufacturing facilities and distribution centers is among the many matters yet to be decided,” said Angie Chaplin Gorman, director of communications for Solo Cup. “However, Dart has said they don’t anticipate making any dramatic changes in the first six to 12 months following government approval and deal close. . . .
Separately, I'll note that unless the proposed Dart deal clears Hart-Scott on an early termination of the waiting period, the Korzenski and Reed $500,000 special bonuses may never be paid. Recall that the terms for payment of the bonus require a completed, closed divestiture -- on or prior to June 1, 2012.
In at least some segments/markets (foam-based cups), Dart is No. 3; Solo is No. 2 -- and Pactiv is No. 1. So, when No. 3 buys No. 2 -- often the DoJ takes a close anti-trust look -- and often that is at the polite request of No. 1 (in this case, Pactiv). There are many other ways to slice the market/segment data, and so it is not at all certain that the FTC/DoJ will prevent the deal from closing on these terms. But FTC/DoJ might just take a bit -- to look into it.
Suddenly, I am feeling just a little more hopeful that Korzenski and Reed may not get those oddly-misshapen, and imprudent payouts.
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