American Securities has entered into an agreement to acquire Tekni-Plex, a packaging and tubing company, from Oaktree Capital Management which acquired the company in 2008. The transaction is expected to close by the end of the year.
Tekni-Plex is a manufacturer of packaging and tubing materials used in the healthcare, food and specialty packaging markets. The company’s products include closure liners, medical tubing, high-barrier pharmaceutical films, medical compounds, dispensing components and thermoformed containers. Tekni-Plex is headquartered in King of Prussia, PA and operates 25 manufacturing facilities across nine countries (www.tekni-plex.com).
“We found Tekni-Plex very attractive given our strategy of investing in market-leading companies,” said David Horing, Managing Director at American Securities. “We believe the company is poised for a strong future and look forward to bringing our resources to bear to support CEO Paul Young and his team for Tekni-Plex’s continued success.”
American Securities invests in businesses with $500 million to $2 billion of revenues. Investments are undertaken with conservative financial structures that typically include only equity and senior debt. The firm aims to invest $150 million to $500 million of equity capital in each portfolio company. Sectors of interest include industrial manufacturing, specialty chemicals, aerospace and defense, energy, business services, healthcare, media, restaurants, and consumer products. The firm has more than $8 billion of capital under management and is currently investing from its sixth fund. American Securities has offices in New York and Shanghai (www.american-securities.com).
Oaktree Capital Management makes investments in distressed debt, real estate, high yield and convertible bonds, specialized private equity, emerging market and Japanese securities and mezzanine finance. The firm has over 700 employees and $79 billion in assets under management and is headquartered in Los Angeles (www.oaktreecapital.com).
Goldman, Sachs & Co. served as financial advisor to Tekni-Plex, and Paul, Weiss, Rifkind, Wharton & Garrison served as the company’s legal advisor. Houlihan Lokey and BMO Capital Markets Corp. served as financial advisors, and Weil, Gotshal & Manges served as legal advisor to American Securities.
© 2013 PEPD • Private Equity’s Leading News Magazine • 11-19-13