Pretium Packaging getting a new owner, plans for acquisitions

By Michael Lauzon
Correspondent

Published: May 1, 2014 11:27 am ET
Updated: May 1, 2014 3:38 pm ET

Image By: Pretium Packaging LLC Pretium CEO George Abd

Related to this story

Topics Mergers & Acquisitions, Packaging, Blow Molding

Blow molded container major Pretium Packaging LLC sees acquisition in the cards under a new owner.

Private equity company Genstar Capital LLC announced May 1 that it has signed a definitive agreement to acquire Pretium from Castle Harlan Inc. Genstar expects the deal to close in June.

Pretium likely will report major terms of the deal in its next filing of a quarterly report to the U.S. Securities and Exchange Commission.

Pretium of Chesterfield, Mo., makes rigid plastic containers and closures for food and specialty beverage, private label, pharmaceutical, personal care and household and industrial sectors. It ranked 17th largest among North America’s blow molders in Plastics News recent survey of players in the market with estimated sales of $235 million for its most recent fiscal year. Pretium was established in 1992.

Pretium employs more than 1,000 at nine U.S. plants and one in Canada. Its supplies more than 650 customers.

“Genstar has a long history of aggressively supporting businesses,” said CEO George Abd in a phone interview. “They focus on organic and acquisition growth. [Pretium hasn’t] made any acquisitions in four years. Genstar will invest capital in the business.”

Genstar and Pretium’s management will pursue acquisitions and invest in strategic initiatives, stated Genstar packaging investment leader David Golde in a news release.

“We are attracted to Pretium’s long-standing commitment to innovation, customer service and manufacturing excellence that have created strong customer relationships and provide the runway for continued growth,” noted Golde.

Abd said Pretium provides highly customized packaging solutions, and the company plans to expand product capabilities, enter new markets and geographies, and build on existing business.

Genstar’s portfolio of companies includes firms producing medical devices and industrial fasteners and springs. It owns several companies with diverse activities in healthcare and also invests in software and financial services. It currently has no packaging company in its profile, but it used to own label supplier Fort Dearborn Co. San Francisco-based Genstar has more than $3 billion of committed capital under its management.

New York private equity company Castle Harlan bought Pretium in 2010. Pretium subsequently bought PVC Container Corp., the parent of blow molder Novapac Corp., and Castle Harlan merged the two companies.

Castle Harlan Co-President Bill Pruellage said in a news release that Pretium is poised for continued growth after meeting strategic and operational goals under Castle Harlan’s ownership.

Abd said in the past four years Pretium expanded its technology by leveraging Novapac’s expertise in PET preforms and bottles. While Pretium put more emphasis on PET containers, it cut costs by reducing its stake in selling PET preforms into the marketplace. In October it closed Novapac’s former Pointe Claire, Quebec, plant which mainly made PET preforms.

“It was a good marriage,” Abd said in recalling the merger with Novapac.

Citigroup Global Markets Inc. acted as financial advisor to Pretium and Schulte Roth & Zabel LLP was its legal advisor. Weil, Gotshal & Manges LLP was legal advisor to Genstar.


Comments

Pretium Packaging getting a new owner, plans for acquisitions

By Michael Lauzon
Correspondent

Published: May 1, 2014 11:27 am ET
Updated: May 1, 2014 3:38 pm ET

Post Your Comments


Back to story


More stories

Image

Xten may shut down, working on sale to Commercial Plastics

October 29, 2014 5:49 pm ET

Xten Industries LLC is working on a sale to Commercial Plastics Co. of Mundelein, Ill. Xten, an injection molder based in Kenosha, Wis., filed a...    More

Image

Protective packaging predicted to grow 6.1 percent annually

October 29, 2014 3:39 pm ET

Protective packaging looks to be a high-growth market in the coming years, according to a new study by Freedonia Group Inc.    More

Image

Schütz investing $20 million for bulk container production in Missouri

October 29, 2014 11:18 am ET

German packaging company Schütz GmbH & Co. KGaA is expanding its presence in the United States through a $20 million project in Missouri slated to...    More

Image

Cosmetic packaging maker expands in China

October 28, 2014 3:32 pm ET

A $180 million expansion project by the Derjin Group of Taiwan has broken ground in China's Jiangsu province.    More

Image

TMI has new private equity owner

October 27, 2014 2:03 pm ET

Pittsburgh-based TMI International LLC, a maker of PVC-based film, panel and sheet products as well as PVC-coated curtains and screens, has been acqui...    More

Market Reports

Plastics Recycling Trends in North America

This report is a review and analysis of the North American Plastics Recycling Industry, including key trends and statistics based on 2013 performance. We examine market environment factors, regulatory issues, industry challenges, key drivers and emerging trends in post-consumer and post-industrial recycling.

Learn more

Plastics in Mexico - State of the Industry Report

This report analyzes the $20 million dollar plastics industry in Mexico including sales of machinery & equipment, resins and finished products.

Our analysts provide insight on business trends, foreign investment, top end markets and plastics processing activity. The report also provides important data on exports, production, employment and value of plastics products manufactured.

Learn more

Plastics Caps & Closures Market Report

The annual recap of top trends and future outlook for the plastics caps & closures market features interviews with industry thought leaders and Bill Wood’s economic forecast of trends in growing end markets. You will also gain insight on trends in caps design, materials, machinery, molds & tooling and reviews of mergers & acquisitions.

Learn more

Upcoming Plastics News Events

January 14, 2015 - January 14, 2015Plastics in Automotive

February 4, 2015 - February 6, 2015Plastics News Executive Forum 2015

June 2, 2015 - June 3, 2015Plastics Financial Summit - Chicago 2015

September 16, 2015 - September 18, 2015Plastics Caps & Closures - September 2015

October 27, 2015 - October 29, 2015Plastics Financial Summit - New York - 2015

More Events