Genstar Capital has signed an agreement to acquire Pretium Packaging, a manufacturer of rigid plastic bottles and containers, from Castle Harlan which first invested in the company in February 2010. The transaction is expected to close in June 2014.
“Pretium represents an outstanding investment opportunity for Genstar that fits well with our investment thesis for the packaging industry,” said David Golde, who leads Genstar’s packaging-related investing efforts. “We are attracted to Pretium’s long-standing commitment to innovation, customer service and manufacturing excellence that has created strong customer relationships and provides the runway for continued growth. We are excited to be working with the senior management team at Pretium as we share a similar vision to pursue an active acquisition strategy and invest in strategic initiatives.”
Pretium Packaging is one of the nation’s largest manufacturers of customized, high performance rigid plastic bottles and containers. The company has capabilities in all major resin types and manufacturing processes and is primarily focused on customers with small-to-medium volume requirements. Pretium sells its products to a customer base of over 750 accounts, ranging from Fortune 500 companies to smaller privately-owned businesses in the food & specialty beverage, private label, pharmaceutical, personal care and household & industrial sectors. The company operates 11 manufacturing facilities, nine in the United States and two in Canada and has approximately 1,000 employees. Pretium is headquartered near St. Louis in Chesterfield, MO (www.pretiumpkg.com).
“Pretium represents a premier platform that advances our investment approach in the industrial technology vertical and within packaging,” said Rob Rutledge, who leads Genstar’s industrial technology vertical. “We will continue to seek investment opportunities similar to Pretium that benefit from the attractive secular trends driving growth in the packaging industry.”
Genstar Capital 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. Sectors of interest include life sciences, healthcare services, software & software services, financial services, and industrial technology. The firm was founded in 1988 and is based in San Francisco (www.gencap.com).
“The past four years have been an excellent and rewarding partnership with Pretium’s management team. The company has realized a number of strategic and operational initiatives and is well positioned for continued growth,” said Castle Harlan Co-President Bill Pruellage.
Castle Harlan makes control investments in middle-market companies in North America, Europe and, together with CHAMP Private Equity, in Australia. Since its inception, Castle Harlan has invested in more than 54 companies representing more than $11 billion in enterprise value. The firm was founded in 1987 and is based in New York (www.castleharlan.com).
Citigroup Global Markets acted as exclusive financial advisor to Pretium, and Schulte Roth & Zabel acted as the company’s legal advisor. Weil, Gotshal & Manges acted as legal advisor to Genstar.
© 2014 PEPD • Private Equity’s Leading News Magazine • 5-1-14