CORE Industrial Partners has sold MedLit Solutions, a provider of pharmaceutical packaging, labeling and printing products and services, to Resource Label Group, a portfolio company of Ares Management.
Ares acquired Resource Label Group (RLG) from First Atlantic Capital and TPG Growth in June 2021 and the buy of MedLit is the sixth add-on acquisition completed by RLG under Ares ownership.
CORE first invested in MedLit in October 2020 with the acquisition of TCG Legacy, a North Carolina-based provider of cross-media marketing, graphics, printing and packaging services. In July 2021, TCG acquired New Jersey-based MedLit Graphics and the combined business began operating as MedLit Solutions.
Today, MedLit is a full-service provider of pharmaceutical packaging and printing services with capabilities that include design, packaging, printing, cutting, gluing, bindery and fulfillment services.
MedLit’s customers include branded and generic pharmaceutical companies, biotech application developers, healthcare service providers, and higher education institutions. The company operates two facilities in North Carolina (headquarters) and New Jersey with a combined 140,000 sq. ft. of manufacturing and fulfillment space.
During Core’s ownership term, the firm was active integrating the operations of TCG and MedLit Graphics, expanding the company’s manufacturing capacity, and assembling a senior management team led by CEO Kevin Grogan.
“CORE has been great to work with,” said Mr. Grogan. “They had a vision for MedLit and gave us the support, advice and resources to achieve our goals ahead of schedule. We look forward to continuing our success as part of the Resource Label Group family and are very excited about the opportunity they now provide us to expand and enhance our value proposition in the marketplace.”
“We are incredibly proud of the MedLit team for building a great business and driving a successful exit in a period of only two years,” said John May, the managing partner of CORE. “With access to CORE’s operational resources and support, Kevin and team have transformed MedLit into a fully integrated pharmaceutical packaging and printing business with advanced manufacturing capabilities. We look forward to continuing to partner with founder and family-owned businesses where our capital and operational expertise can help create value.”
“During CORE’s ownership, we identified an opportunity to drive value creation by expanding MedLit’s presence in the pharmaceutical end market. As a result, we made significant investments to enhance MedLit’s manufacturing equipment footprint, expanded the product portfolio and assembled a highly experienced management team comprised of packaging industry veterans and pharmaceutical market experts,” said Frank Papa, a senior partner at CORE and the chairman of MedLit. “The MedLit team’s ability to execute key strategic initiatives while still providing quality products and services to its customers resulted in a period of growth and performance over the course of our investment.”
Resource Label Group is a manufacturer of pressure-sensitive labels, shrink sleeves, radio-frequency identification (RFID) and near-field communication (NFC) products. The company’s labeling products are used in the food, beverage, chemical, household products, personal care, nutraceutical, pharmaceutical, medical device, and technology industries. RLG, led by CEO Mike Apperson, is headquartered in Franklin, Tennessee and has 23 manufacturing locations across the United States and Canada.
“I am proud to welcome the team at MedLit Solutions to the Resource Label Group family,” said Mr. Apperson. “MedLit has an outstanding team of packaging experts focused on providing best-in-class solutions for their customers. Their industry expertise significantly strengthens our offering and position in the growing pharmaceutical segment.”
Chicago-based CORE makes control equity investments of up to $100 million in North America-based companies that have revenues of up to $200 million and EBITDA of up to $20 million. Sectors of interest include a range of specialty verticals within the manufacturing and industrial technology sectors.
Ares Management (NYSE: ARES) has approximately $341 billion of assets under management and invests in private equity, leveraged loans, high-yield bonds, distressed debt, and private debt. Within Ares, its private equity group manages $35 billion of assets and is currently investing its $5.7 billion and sixth private equity fund. Ares is headquartered in Los Angeles with offices across North America, Europe, Asia Pacific and the Middle East.
Mesirow Financial was the financial advisor to CORE and MedLit on the transaction.
© 2022 Private Equity Professional | November 1, 2022
