plastic packaging

Olympus Buys DS Smith Plastics Business

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London-based packaging firm DS Smith has agreed to sell its plastics division to Olympus Partners at an enterprise value of $585 million. DS Smith reported in December 2018 that it was exploring options for its plastics division including a potential sale. The valuation multiple for this transaction appears below.

DS Smith Plastics is one of four divisions of DS Smith, a provider of corrugated and plastics packaging for consumer and industrial goods supported by paper and recycling operations, that employs more than  24,000 people worldwide with a headquarters in London, UK (www.dssmith.com).

DS Smith Plastics manufactures flexible packaging and dispensing products, rigid packaging & containers, and foam products.  The company’s products are used in packaging and distribution applications in the retail and e-commerce, transit packaging, food & beverage, construction, graphics, protective packaging, recycling, automotive, and pharmaceutical sectors.

DS Smith Plastics operates from 26 sites (11 flexible packaging production plants and 15 rigid packaging manufacturing plants) in 16 countries and is headquartered near Chicago in Romeoville, IL (www.dssmith-plastics.com).

The enterprise valuation of $585 million represents a multiple of 9.9x TTM EBITDA through October 2018. Annual revenues for the plastics division are approximately $420 million.

“I am delighted to confirm that we have reached an agreement for the sale of our plastics division,” said Miles Roberts, group chief executive. “The transaction is attractive both financially and strategically for DS Smith. My colleagues in the plastics division have worked hard to build the business into the success that it is today, and that quality has been recognized by Olympus Partners.

Olympus Partners provides equity capital for middle market management buyouts and for companies needing capital for expansion.  The firm invests in a wide array of industries but has specific expertise in business services; logistics and transportation; healthcare manufacturing and services; financial services; consumer and restaurant; and general industrial and packaging. In December 2017, Olympus held a final closing of its seventh institutional private equity fund, Olympus Growth Fund VII LP, with an oversubscribed $3 billion of capital commitments. The firm was founded in 1988 and is based in Stamford, CT (www.olympuspartners.com).

Closing of this transaction is expected in the second half of 2019.

© 2019 Private Equity Professional | March 7, 2019

Graham Keeps Building in Plastic Packaging

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Graham Partners has acquired Nuconic Packaging, a supplier of rigid PET plastic packaging to commercial and industrial food processors, from Carlin Capital Partners which first invested in the company (then called Winkler Plastic) in January 2011.

Nuconic manufactures containers and lids in a variety of shapes and sizes as well as packaging for cakes and other food products. The company’s products are used for baked goods, confections, snack food and produce. Nuconic is led by its CEO Alan Franz and is headquartered near Los Angeles in Vernon, CA (www.nuconicpackaging.com).

The buy of Nuconic follows Graham’s acquisition in November 2017 of EasyPak, a Leominster, MA-based provider of thermoformed packaging (made from 100% post-consumer recycled materials) to companies operating in the healthy and natural food markets (www.easypak.net); and the December 2017 acquisition of Tray-Pak, a Reading, PA-based thermoformed packaging provider to companies operating in the food, confectionery and medical markets (www.traypak.com).

“Graham Partners is very excited to partner with the Nuconic team, led by industry veteran Alan Franz,” said Adam Piatkowski, a Managing Principal at Graham Partners. “The company has experienced strong growth driven by a strategic market focus and strong customer relationships, and we have identified significant synergies due to the expanded geographic coverage and capabilities of the combined platform.”

Nuconic’s PET plastic packaging products are complementary to EasyPak and Tray-Pak and advance Graham’s strategy to build a nationwide, mid-sized packaging provider, in combination with Tray-Pak and EasyPak. The buy of Nuconic expands the combined company’s footprint to the West Coast, which is expected to be a key growth area moving forward. Graham’s investment in the packaging sector is benefiting from increasing consumer demand for sustainable packaging options and freshly prepared, on-the-go meals.

Mesirow Financial (www.mesirowfinancial.com) was the advisor to Nuconic on this transaction. “We are thrilled to have advised Nuconic in connection with this investment,” said Rick Weil, managing director of Mesirow’s investment banking group. “The company has developed a strong competitive position and will continue to prosper in the thermoformed packaging space under Graham’s leadership.”

Graham Partners acquires companies with EBITDA between $5 million and $50 million and will invest in smaller companies as add-on acquisitions to existing portfolio companies. The firm is sponsored by the Graham Group, an industrial and investment concern with interests in plastics, packaging, machinery, building products and outsourced manufacturing. Graham Partners was founded in 1988 and is headquartered in Philadelphia (www.grahampartners.net).

Carlin Capital Partners, the seller of Nuconic, invests in companies that have revenues of less than $100 million and EBITDA of less than $5 million. Sectors of interest include consumer and business services; media, publishing, and tradeshows; niche manufacturing and distribution; and software. The firm was founded by the father and son team of Skip and Jason Farber and is headquartered in Encino, CA (www.carlinpartners.com).

© 2018 Private Equity Professional | August 14, 2018

Graham Partners Acquires Comar

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Comar, a designer and manufacturer of plastic packaging, has been acquired by Graham Partners.

Comar is a designer and manufacturer of packaging and liquid dispensing products serving the pharmaceutical, diagnostic, health, and personal care markets. Major products include oral dispensers, dropper assemblies, dosing devices, closures, bottles, and other custom pharmaceutical and healthcare products. Comar was founded in 1949 and has manufacturing locations in Buena, NJ (headquarters) and Cayey, Puerto Rico (www.comar.com).

“We are excited to partner with the Comar team and look forward to utilizing Graham’s industry knowledge to build on Comar’s strong capabilities and take the company to the next level of growth and expand its geographical footprint,” said Adam Piatkowski, Managing Principal of Graham Partners.

P&M Corporate Finance (www.pmcf.com) served as financial advisor to Comar on this transaction. P&M will continue to assist the company in pursuing add-on acquisitions in both North America and Europe.

“For over sixty years, Comar has been family-owned and focused primarily in North America. As we look to the future, our strategic plans include geographical expansion to serve our customers on a more global scale, as well as continuing to strengthen our leadership position in North America. We are very excited about our new partnership with Graham, who brings significant experience in plastic packaging and leading companies through international expansion,” said Michael Ruggieri, President and CEO of Comar.

Mr. Ruggieri will continue to lead Comar as its President and CEO and will remain a significant Comar shareholder.

Graham Partners seeks to acquire industrial companies with revenues between $30 million and $500 million that participate in manufacturing niches where it can leverage its combination of operating resources and financial expertise. The firm is sponsored by the Graham Group, an industrial and investment concern with interests in plastics, packaging, machinery, building products and outsource manufacturing. Graham Partners was founded in 1988 and is headquartered in Philadelphia (www.grahampartners.net).

© 2013 PEPD • Private Equity’s Leading News Magazine • 10-24-13