MSD Partners has agreed to buy Ring Container Technologies, one of the largest plastic container manufacturers in North America, from Carl Ring and his family.
Ring Container is a blow molder of high-density polyethylene (HDPE) and polyethylene terephthalate (PET) plastic bottles that are sold to the food service, retail food and other end-use markets. Since its founding in 1968, the company has become one of the largest plastic container manufacturers in North America. Ring employs more than 700 people throughout its headquarters and manufacturing locations in 17 cities across the US, Canada and the UK. The company is headquartered 35 miles east of Memphis in Oakland, TN (www.ringcontainer.com).
Upon closing of the transaction in the fourth quarter, Ring will continue to be led by CEO Ben Livingston and his executive team, who will retain their ownership interests. Rapac, a wholly-owned subsidiary of Ring and the largest recycler of polystyrene in the US and a provider of engineered resins for a variety of end-use applications, is included in the acquisition.
“Ring fits seamlessly with MSD Partners’ strategy to invest for the long term in companies that are stable, in industries that are thriving, and in management teams that are able to generate growth,” said Kevin Brown, a Managing Director in the Private Capital Group at MSD Partners. “Everything at Ring is best in class – from the way the teams execute projects, to the overall financial profile. We look forward to growing with this team.”
MSD Partners invests across a range of asset classes. For direct investments in operating companies the firm looks to invest at least $100 million in business that have enterprise values of $200 million to $1 billion or more and EBITDA in excess of $25 million. Industries of interest include business and tech-enabled services, light industrial and industrial services, value-added distribution, healthcare services, media and entertainment, and consumer products.
The buy of Ring is the latest control investment by MSD Partners and follows its recently completed acquisition of Hayward Industries, an Elizabeth, NJ-based manufacturer of residential and commercial pool equipment and industrial flow control products, in partnership with CCMP Capital Advisors and Alberta Investment Management Corporation.
“Throughout the due diligence process, we maintained a commitment to identifying a new, long-term owner who appreciated Ring’s culture and other qualities that have been fundamental to our growth into an industry leader,” said Carl Ring, Chairman. “MSD Partners not only is an organization that we respect, but it is a seamless fit with our culture and the best possible owner to move our company forward.”
“The acquisition comes at a perfect time for Ring,” said Ben Livingston, CEO of Ring. “MSD Partners believes fully in what we are doing, and will provide the needed capital so that we can continue to invest in innovation, best-in-industry technology platforms, and world-class manufacturing.”
MSD Partners was formed in 2009 by the principals of MSD Capital to enable a select group of investors to invest in strategies that were developed by MSD Capital, a family office formed to manage the capital of Michael Dell and his family. MSD Partners is headquartered in New York with an additional office in London (www.msdprivatecapital.com).
Ring Container was advised by BMO Capital Markets.
© 2017 Private Equity Professional | September 15, 2017
