The ratings on Evansville, Ind.-based Berry Plastics Corp. reflect its fair business risk profile and risks associated with its highly leveraged financial profile and acquisition-driven growth strategy. Berry is a leading producer of rigid plastic packaging products for relatively stable dairy, food, beverage, health care, and other consumer product applications. The company also manufactures flexible packaging products, some of which serve more cyclical end markets. In December 2009, Berry acquired Pliant Corp. out of bankruptcy for about $640 million including assumed debt and acquisition costs. Pliant is a leading manufacturer of films and flexible packaging for food, personal care, medical, agricultural, and industrial applications. However, we regard its business as highly competitive and likely to continue to have lower margins
