BPOC has acquired a majority equity interest in Praxis Packaging from Huizenga Group which first invested in the company in 2008. Huizenga Group will retain a minority ownership interest in the company.
Praxis provides both primary and secondary contract packaging services to the over-the-counter, prescription pharmaceutical, medical device, animal health, and health and beauty industries. Primary packaging is the first layer of packaging that touches a product – providing containment, protection, and preservation – while secondary packaging is the exterior packaging of the primary packaging.
“We are very proud of everything that we have achieved with Huizenga Group’s support,” said Mr. King. “As we enter an exciting phase of growth, we are very happy to welcome BPOC. BPOC is a true industry leader, and I am confident that they are the right strategic partner for our business.”
With the close of the transaction, John Lowry, the former CEO of Amerigen Pharmaceuticals and Catalent Pharma Solutions, will join Praxis as its executive chairman.
“For over 30 years, Praxis has provided flexible, high-quality contract packaging services across the healthcare sector,” said Adam Hentze, a principal at BPOC. “BPOC is excited to partner with the company’s proven management team and John Lowry to enhance Praxis’ unique market position and capabilities.”
BPOC (Beecken Petty O’Keefe & Company) invests in middle-market buy-out transactions, recapitalizations, and growth platforms in the health care industry. Typical targets have EBITDAs from $5 million to $50 million and enterprise values from $50 million to $500 million. The firm is currently investing out of its fifth fund, Beecken Petty O’Keefe & Company Fund V LP, which closed in 2018. BPOC was founded in 1996 and is headquartered in Chicago.
“Praxis has an incredible management team, and it has been a pleasure to work together to grow the business since 2008. We see BPOC as a great go-forward partner, we remain committed to Praxis and are optimistic about its future prospects,” said J.C. Huizenga, the chairman of Huizenga Group.
The Huizenga Group, led by J.C. Huizenga, invests in and provides management services to middle-market commercial and industrial companies operating in the tool and die, pharmaceutical packaging, machined parts, electrical contracting, and automotive sectors. The Huizenga family has founded Waste Management, Blockbuster Video, and Auto Nation. The Huizenga Group is headquartered in Grand Rapids, Michigan.
Twin Brook was the administrative agent on debt financing used to back the acquisition of Praxis by BPOC. Chicago-based Twin Brook focuses on loans to private equity-owned companies with EBITDA between $3 million and $50 million, with an emphasis on companies with $25 million of EBITDA and below. The firm targets senior financing opportunities up to $200 million, with hold sizes across the platform ranging from $25 million up to $150 million. Twin Brook’s products include opportunistic investments in second lien, mezzanine, and equity co-investments.
SVB Securities was the financial advisor to Huizenga Group.
© 2022 Private Equity Professional | August 23, 2022
