Castle Harlan Completes Acquisition of Manufacturers of Specialty Plastic Packaging for $200 Million
NEW YORK, Feb. 16 /PRNewswire/ -- Castle Harlan, Inc., the New York private equity investment firm, announced today it has completed the acquisition of Pretium Packaging, L.L.C., one of the country's leading manufacturers of custom-designed specialty plastic containers for the food, pharmaceutical, personal-care and household markets.
In conjunction with the closing of the Pretium transaction, Castle Harlan said Pretium acquired PVC Container Corporation, the parent of Novapak Corporation, which also makes specialty plastic containers and has a product line and customer base that complement Pretium's. The total transaction is valued at approximately $200 million.
Castle Harlan said the combined company, which carries the Pretium name, has annual sales of approximately $240 million and 14 manufacturing plants in the United States and Canada serving more than 500 customers.
Pretium was sold by founder Keith Harbison, who retains a significant minority stake as a partner in the company and sits on its board of directors. Pretium is based in Chesterfield, Missouri. Pretium's management will continue to operate the company, along with certain members of Novapak's management team.
Novapak, based in Eatontown, New Jersey, was sold by Kirtland Capital, a Cleveland-based private equity investment firm.
George Abd, Pretium's president and chief executive officer, said, "This transaction combines world-class assets that enable us to give our customers, and the market in general, an unparalleled breadth of product offerings and innovative packaging designs with a strong and shared cultural focus on quality, service and value."
Abd also praised Castle Harlan's "twenty-three year history of partnering with management teams to realize shareholder value through superior customer service."
William Pruellage, the Castle Harlan senior managing director who led the acquisition, said it benefits all parties.
"There is very little overlap in customers between the two companies, which enables Pretium to offer a broader range of products and services to existing customers," Pruellage said. "In addition, we see abundant opportunities for the combined company to expand its customer base geographically, and we believe management is energized to do that."
Anand Philip, vice president of Castle Harlan, said, "We already have begun working closely with Pretium to help grow the combined business. This platform has significant opportunities for expansion on top of a stable existing business."
Castle Harlan, founded in 1987, invests in controlling interests in the buyout and development of middle-market companies in North America and Europe. Its team of 19 investment professionals has completed 50 acquisitions since its inception with a total value in excess of $9 billion. Castle Harlan currently manages investment funds with equity commitments of $2.5 billion. The firm traces its roots to the start of the institutionalized private-equity business in the late 1960s.
Castle Harlan's current portfolio companies, which employ more than 42,000 people, include Ames True Temper, the nation's largest manufacturer of lawn and garden tools and accessories, Baker & Taylor, the world's largest distributor of books and entertainment products to libraries and retailers, and Associated Packaging Technologies, Inc., a leader in specialty packaging for the world-wide frozen food industry.
SOURCE Castle Harlan, Inc.