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Capital Commercial Investments
(CCI) purchased the Continental Can facility in July 2001. The Continental Can facility (the company
is now known as Consolidated Container) is located at 6831 Silsbee in
South Houston just south of the 610 Loop and Interstate Highway 45.
The real property includes 81,282 SF including more than 8,000 SF of
office, and is situated on 4.48 acres. Continental Can is a $7.3
billion dollar company and one of the largest manufacturers of rigid
plastic containers in the U.S.
CONTINENTAL
CAN - 81,282 SF Operations
Continental Can is one of the largest manufacturers
of rigid plastic containers in the U.S., selling over 4 billion containers
each year. The company markets its products to the consumer, agricultural,
and industrial chemical industries. They produce containers for
a variety of products including water, milk, ketchup, salsa, soap, motor
oil, anti-freeze, insect repellent, fertilizers, and medical supplies.
Proctor & Gamble is reported to be Continental Can’s largest customer,
accounting for about 15% of sales. As of 1996, Continental Can
reports to have more than $8 million in equipment, not including installation
costs, contained in the 6831 Silsbee facility. Also incorporated
into this project are high amperage power supply units and rail service
which the tenant requires.
Lease
Continental Can’s third lease at this location
commenced June, 1994 and expires May, 2004. A lease rate of $21,467/month
($0.2683 psf) is currently in effect with annual increases to $24,133/month
($0.3017psf) in 2004.
Credit
Previously know as Continental Can, Consolidated
Container was created in early 1999 when Reid Plastics merged with Suiza
Foods Corporation’s domestic plastic packaging operations. One
of the nation’s largest food processor and distributors, Suiza Foods,
assumed 43% ownership of Continental Can. Suiza recently sold
its overseas packaging company leaving Continental Can as its remaining
packaging investment. A merger between Suiza Food and Dean Foods
Company was recently announced, forming a national dairy and specialty
foods company with $10 billion in revenue. A remaining undisclosed
portion of the Continental Can is owned by Vestar Capital Partners,
a private equity partnership. The management company was founded
by seven persons from the management buy-out group of Credit Suisse
First Boston. Vestar’s $4 billion in funds are backed by such
institutional investors as IBM and General Motors, as well as ivy league
schools, private banks and charitable organizations.
Continental
Can is well funded and poised to serve its numerous parent companies.
The following are the available operating results for Continental Can
since its merger and recent acquisition. Suiza Foods, the most
direct parent company, recorded a net sales growth of almost 30% to
$5.8 billion for the year ending December, 2000, compared with $4.5
billion in 1999. Operating Income of $375 million was reported,
along with an increase in earnings per share of almost 15%. |
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