Genstar has sold Pretium Packaging, a manufacturer of plastic containers and closures, to Clearlake Capital Group.
Pretium Packaging is a manufacturer of plastic containers and closures for the food; specialty beverage; household and industrial cleaner; sports nutrition and health; and beauty product industries.
Pretium, with more than $450 million in annual revenues, has more than 700 customers, ranging from Fortune 500 companies to smaller privately-owned businesses, and manufactures approximately two billion PET and HDPE containers annually from its 19 locations across the United States and Canada. The company, led by CEO Paul Kayser, is headquartered near St. Louis in Chesterfield, Missouri.
Genstar acquired Pretium from Castle Harlan in 2014 and during its ownership term completed seven add-on acquisitions:
- Tri-Delta Plastics, a maker of containers, bottles, and closures used in the food, healthcare, and household chemicals end markets, acquired in December 2014;
- Intertech, a maker of stock, custom, and proprietary plastic bottles, acquired in February 2015;
- Custom Blow Molding, a maker of packaging and containers used in the sports nutrition and nutraceuticals markets, acquired in July 2016;
- Patrick Products, a maker of rigid blow-molded plastic containers used in the janitorial, automotive, and household chemical markets, acquired in April 2017;
- Cox Container, a blow molder of high-density polyethylene containers for food, beverage, dairy and industrial applications, in July 2018;
- Olcott Plastics, a maker of jars and closures used in the beauty and healthcare sectors, acquired in April 2019; and
- Starplex Scientific, a maker of leak-resistant sterilized containers, biological sampling swabs, and pharmaceutical grade containers and closures, acquired in August 2019.
“We built Pretium from the talent and capabilities of several independent companies in the US and Canada into the most trusted supplier of rigid packaging solutions today,” said David Golde, a managing director at Genstar. “The combination of Genstar’s investment team and Pretium’s strong leadership under Paul Kayser allowed us to double the size of the business and create a company that today has the scale and dedication to innovative solutions to meet specific market needs. The significant investments we made in processes, product innovation, and add-on initiatives completed over the past several years will continue to drive value for Clearlake.”
San Francisco-based Genstar invests from $50 million to $400 million in middle-market companies that have enterprise values from $50 million to $1 billion and EBITDAs greater than $15 million. The firm targets investments in the financial services, software, industrial technology, and healthcare industries. In February 2019, Genstar held a final closing of Genstar Capital Partners IX LP with $5.9 billion in capital commitments.
“Pretium flourished under Genstar’s ownership and thanks to their support and collaborative approach we have created a strong platform with customized packaging solutions and strong engineering capabilities poised for future success in the packaging industry,” said Mr. Kayser. “Our leading-edge products and superior service will support our customer’s needs well into the future. We are excited about our next chapter of growth in partnership with Clearlake.”
Clearlake has over $9 billion of assets under management and invests in the industrials and energy; software and technology-enabled services; and consumer sectors. In March 2018, Clearlake closed Clearlake Capital Partners V LP with over $3.6 billion in commitments. Fund V exceeded its target and was substantially oversubscribed, reaching its hard cap. The Santa Monica, CA-based firm was co-founded by José Feliciano and Behdad Eghbali in 2006.
© 2020 Private Equity Professional | January 21, 2020