Packaging Acquisitions in 2019

MSI Express, a portfolio company backed by HCI Equity Partners, acquired Power Packaging on December 31, 2019. The add-on expands MSI Express’s contract packaging and co-manufacturing capabilities (including aseptic beverage filling and stick packaging), increases production footprint across the Midwest and Texas, and brings new customer relationships and food categories to the platform; financial terms were not disclosed.

Broadtree Partners has acquired CanSource, a Longmont, Colorado-based supplier of shrink-sleeved cans for craft beverage producers. Broadtree said it will support CanSource's growth and geographic expansion while CanSource founders Pat Hartman and Ron Popma move to advisory roles on the board.

Advanced Barrier Extrusions (ABX), a Graham Partners portfolio company, has acquired the business of Flexographic Packaging Company (FPC) from its founder. The acquisition vertically integrates ABX by adding flexographic printing and laminating capabilities to its multi-layer high-barrier film co-extrusion offering, expanding its ability to serve food (and related) packaging customers.

Wind Point Partners-backed U.S. Nonwovens has acquired the polyvinyl alcohol (PVA) packaging division of Multi-Pack Holdings LLC (doing business as Multi-Pack Chicago). The acquisition adds unit‑dose water‑soluble PVA packaging capabilities to USN’s portfolio, expanding its product offering in the retail laundry and dish detergent end markets and will be integrated as a division of U.S. Nonwovens.

GELPAC, a portfolio company of NAMAKOR, has acquired WBC Extrusion Products, Inc., a Haverhill, Massachusetts-based manufacturer of single-use blown polymer films for food, industrial, automotive, medical and commercial packaging. The deal, supported/financed by NAMAKOR and institutional investors including CDPQ and le Fonds Manufacturier Québécois, expands GELPAC's North American manufacturing footprint and integrates WBC's R&D and production capabilities with GELPAC's existing plants.

Arsenal Capital Partners has completed the acquisition of Clariant's healthcare packaging business, which will be rebranded as Airnov Healthcare Packaging. The carved-out business—a global maker of desiccants, oxygen-scavenging solutions and barrier plastic bottles with manufacturing sites in France, the U.S., China and India—employs ~600 people and will be led by Matthias Brommer under Arsenal's ownership as it pursues organic investment and complementary acquisitions.

Tosca, a U.S. reusable packaging and supply-chain solutions provider backed by funds advised by Apax Partners, has agreed to acquire Polymer Logistics from a consortium of private investors. The deal expands Tosca's geographic footprint into Europe and broadens its reusable transport packaging and retail-ready product offering; Apax Funds committed additional capital to Tosca to finance the acquisition.

The Halifax Group completed a recapitalization investment in Prairie Industries, Inc. and Nu-Pak, Inc., partnering with the companies' founders and management to support growth in contract packaging and contract manufacturing. Headquartered in Prairie Du Chien, Wisconsin, the combined business operates multiple packaging and food-manufacturing facilities; terms were not disclosed.

The Eastern Company (NASDAQ:EML) acquired 100% of Big 3 Precision Products, Inc. and Big 3 Precision Mold Services, Inc. from TVV Capital for $81.7 million. The acquisition expands Eastern's engineered/returnable packaging and mold-tooling capabilities, is immediately accretive to earnings, and supports Eastern's strategy to grow EBITDA and pursue bolt-on acquisitions.

German private equity investor Deutsche Beteiligungs AG (DBAG), together with the DBAG-advised DBAG Fund VII, has agreed to acquire CPL Holdings (Cartonplast) from Stirling Square Capital Partners. Cartonplast, headquartered in Dietzenbach, Germany, operates a large pool of reusable transport packaging (RTP) and provides just-in-time logistics for beverage, food and cosmetics customers across multiple countries; the transaction is subject to regulatory approvals.

Dunes Point Capital has acquired a controlling interest in Vanguard Packaging, which includes Vanguard Packaging, Inc., Advanced Logistics & Fulfillment, LLC, and Great Plains Packaging, Inc. Vanguard is a Kansas City–based designer and manufacturer of high-graphic corrugated displays, retail-ready and industrial packaging, and provides related assembly, logistics and fulfillment services; the company employs approximately 200 people. Debt financing for the transaction was provided by Twin Brook Capital Partners and Churchill Asset Management.

Akoya Capital Partners and Tecum Capital Partners acquired Primetac Corporation in partnership with the company's founders and management. The private equity investors plan to grow Primetac — a distributor of industrial packaging materials — by expanding sales coverage, service and product offerings and pursuing add-on acquisitions to build a national platform.

Aurora Capital Partners has acquired Cold Chain Technologies (CCT), a Franklin, Massachusetts-based provider of single-use and reusable passive thermal packaging solutions serving the life sciences supply chain. The private equity firm intends to partner with CCT's management to accelerate global expansion, develop new products and grow the company's reusable solutions offering; terms were not disclosed.

An affiliate of Platinum Equity has completed the acquisition of Multi-Color Corporation, taking the Cincinnati-based label and packaging solutions provider private. The deal merges Multi-Color with a subsidiary of Platinum portfolio company WS Packaging to create a combined business with roughly $2.2 billion in annual revenue, 86 plants across 26 countries and over 10,000 employees.

Warburg Pincus has agreed to acquire Pregis LLC, a leading manufacturer of protective packaging materials and automated systems, from Olympus Partners for an undisclosed amount. Pregis will continue to be led by CEO Kevin Baudhuin as Warburg Pincus partners with management to accelerate growth, expand capabilities in e-commerce enablement and automation, and build on recent European expansion.

Kyocera Corporation acquired SouthernCarlson, a leading distributor of fastening and packaging products and supplies, from Kelso Fund IX, closing on June 3, 2019. SouthernCarlson operates 150+ branch locations and 22 distribution centers across North America, providing Kyocera with an expanded distribution footprint in the United States, Canada and Mexico.

Brixey & Meyer Capital completed the acquisition of Patriot Converting, Inc., a custom paper converting and logistics provider based in Elk River, Minnesota. Cherry Tree advised Patriot Converting on the sale, which transfers ownership from founder/owner Mike Stilwell to the Ohio-based private investment firm to expand BMC’s manufacturing and distribution platform.

Charter NEX Films, owned by private equity firms Leonard Green & Partners and Oak Hill Capital, has reached a definitive agreement with Dave Frecka to combine with Next Generation Films, creating a larger specialty films platform. The combined company will operate as two synchronized divisions, maintain existing management teams, and expand manufacturing footprint and technical capabilities across multiple U.S. states.

Innova Capital has agreed to acquire CheMeS M. Szperliński Sp. z o.o., a Polish manufacturer of self-adhesive and heat-shrink labels, from Abris Capital Partners (binding contract signed 17 April 2019). The deal is part of Innova's strategy to consolidate the Central European label market and follows its March 2019 majority investment in Embe Press; the transaction is subject to regulatory approval.

Pretium Packaging has acquired Olcott Plastics, a St. Charles, Illinois-based injection molder and maker of jars and closures, expanding Pretium's personal care/beauty packaging capabilities and national product offering. The transaction was sponsored by Genstar Capital and retains Olcott's existing employees and management.

I&I Sales Group, a platform company backed by Osceola Capital Management, has completed an add-on acquisition of Cinpak, an Austin, Texas-based provider of outsourced sales and marketing services and distributor of foodservice disposables. The deal is the third acquisition for the I&I Sales Group platform and expands the platform's geographic footprint and product offering across disposables, safety, equipment and janitorial/sanitation categories.

Golden West Packaging Group LLC, a packaging platform formed by private equity firm Lindsay Goldberg, has acquired Allpak Container, LLC. The deal expands Golden West’s West Coast manufacturing footprint and adds Allpak’s flexographic printing and high-end consumer packaging capabilities across Washington state.

Funds advised by Triton and Luxinva (a wholly owned subsidiary of the Abu Dhabi Investment Authority) acquired 100% of IFCO from Brambles Limited in a completed transaction announced June 3, 2019. The partners will own IFCO equally and said they plan to support the company’s growth and development; IFCO is a leading global provider of reusable packaging (RPCs) serving grocery retailers and fresh-food suppliers in 50+ countries.

HCI Equity Partners has acquired Express Packaging, a Newcomerstown, Ohio-based provider of outsourced contract packaging and contract manufacturing services for global consumer brands. Patriot Capital Group provided subordinated debt and an equity investment to support the transaction; Express operates three SQF Level 3 certified facilities in West Chicago, IL; Columbus, OH; and Newcomerstown, OH.

Greif, Inc. has completed the acquisition of Caraustar Industries from H.I.G. Capital for $1.8 billion. Caraustar, headquartered in Austell, Georgia, is a leading producer of uncoated and coated recycled paperboard and recovered-fiber recycling services; the acquisition expands Greif’s recycled paperboard, tubes & cores and industrial packaging capabilities across North America.

Envases Universales de Mexico, through its European subsidiary Glud & Marstrand AS, has acquired 100% of Pack2Pack International B.V. from Coöperative GEM Benelux B.A. and minority shareholders. The acquisition expands Envases’ Food & Industrial Packaging footprint in Europe, strengthening its service offering to food and industrial customers.

Orora Limited (ASX:ORA) acquired Pollock Investments Inc., a Dallas-based manufacturer and distributor of packaging and facilities (JanSan) supplies, extending Orora’s North American footprint. The deal brings Pollock’s multi-state operations and product portfolio into Orora’s platform to support growth in the facilities supplies and packaging markets.

Atlas Holdings LLC has acquired Saxco International, LLC, a leading North American value-added distributor of rigid packaging serving wine, spirits, craft beer and food customers. Saxco, headquartered in Concord, California with more than 250 employees and a loyal base of over 5,000 customers, was previously owned by The Sterling Group; terms were not disclosed.