Kohlberg & Company has acquired PPC Industries, an engineered plastics processor, from AEA Investors.
PPC Industries, a portfolio company of AEA since March 2006, is a maker of tubing, film and bags using engineered plastic resins. The company’s products are used in niche segments of the medical, pharmaceutical, food, and industrial markets. The company is headquartered south of Milwaukee in Pleasant Prairie, WI and employs more than 500 people at seven factories in the United States, Costa Rica, Ireland and Malaysia (www.ppcind.com) (www.kelpacmedical.com).
GE Antares was the administrative agent on a $160 million senior secured credit facility to support the acquisition of PPC by Kohlberg. GE Antares also made a minority investment in the company. “GE Antares has been a trusted lender of Kohlberg’s for many years,” said Seth Hollander, partner at Kohlberg. “Their expertise in the middle market, knowledge of PPC and ability to move quickly through the approval and closing process made them a logical choice to lead the financing. We continue to benefit from our longstanding relationship with GE Antares.”
GE Antares has had a lending relationship with PPC for the past eight years. “Since becoming part of our portfolio in 2006, we’ve seen PPC grow and exceed expectations,” said Chet Zara, senior managing director of GE Antares. “We’re pleased to provide debt financing and a minority equity investment to Kohlberg in support of their acquisition. In partnership with management, Kohlberg will be a valuable strategic partner to PPC as they pursue further growth.”
Kohlberg & Company invests in companies in the industrial manufacturing; consumer products; business services; healthcare services; and financial services sectors. The firm concentrates on transactions with EBITDAs between $20 million and $100 million where it can invest between $50 million and $200 million of equity. Kohlberg & Company is currently investing its seventh private equity fund, Kohlberg Investors VII. The firm was founded in 1987 and is based in Mt. Kisco, NY (www.kohlberg.com).
2014 PEPD • Private Equity’s Leading News Magazine • 11-7-14
