ProAmpac, a portfolio company of PPC Partners, has acquired Gateway Packaging Company, a portfolio company of Saw Mill Capital since June 2010. PPC acquired ProAmpac from Wellspring Capital Management in October 2016.
Gateway Packaging Company is one of the largest pet food packaging manufacturers in North America and provides an array of products including multi-wall bags, stand-up pouches, small- and large-format quad-seal bags, box pouches, roll stock, treat bags, and hybrid bags. In January 2017, Gateway Packaging acquired the operating assets of Werthan Packaging, a maker of flexible packaging used in the pet food market. Werthan had filed for bankruptcy protection in December 2016.
Gateway Packaging, led by CEO Omar Abuaita, was founded in 1982 and is headquartered north of Nashville in White House, TN (www.gatewaypackaging.com).
ProAmpac’s packaging capabilities include adhesive lamination, extrusion coating and lamination, film extrusion, metalizing, pouching, bag converting, rotogravure printing, flexographic/offset printing, and HD flexo printing. The company operates under the Prolamina, Ampac, Tulsack, Bonita Pioneer and Trinity Packaging brands and serves customers in the food, pet care, health care, lawn care, and retail markets as well as providing packaging used in the transport of cash and valuables. ProAmpac has 33 manufacturing sites with nearly 3,700 employees supplying more than 5,000 customers in 90 countries. ProAmpac is headquartered in Cincinnati (www.proampac.com).
Gateway will be integrated into ProAmpac’s Extrusion and Laminations division, led by division President Tom Loewald. “The acquisition of Gateway expands our product offering with the addition of multi-wall bags while also increasing our manufacturing capacity of several pouch formats,” said Greg Tucker, CEO of ProAmpac.
The buy of Gateway is the third add-on acquisition closed by ProAmpac in 2018. Last month it acquired Pactech Packaging, a Rochester, NY-based manufacturer of flexible packaging including pouches, bags, covers, liners, and roll stocks with zippers, fitments, spouts, and other reclosing options (www.pactechpackaging.com); and in January it acquired Portland, OR-based Bonita Pioneer, a manufacturer of paper packaging products including custom and stock shopping bags, merchandise bags, foodservice packaging, and folding cartons (www.bonitapioneer.com).
PPC Partners acquires North America-based middle-market companies that have enterprise values between $100 million and $750 million and EBITDA in excess of $15 million. Sectors of interest include manufactured products, services and healthcare. The firm is led by Tony Pritzker and the former investment and operating professionals of Pritzker Group Private Capital. PPC Partners has offices in Chicago and Los Angeles (www.PPCPartners.com).
Saw Mill Capital, the seller of Gateway Packaging, invests in North American-based manufacturing, industrial and commercial service, and specialty distribution businesses with $25 million to $200 million of revenues and $5 million to $25 million of EBITDA. The firm was founded in 1997 and is headquartered north of New York City in Briarcliff Manor, NY (www.sawmillcapital.com).
© 2018 Private Equity Professional | May 1, 2018
