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

Castle Harlan buys landscape erosion control firm Tensar

July 30, 2014 3:46 pm ET

Private equity group Castle Harlan inc. has acquired Atlanta-based Tensar Corp., with plans for the geosynthetic products maker and its subsidiaries...    More

Image

Sainsbury, Schoeller Allibert to recycle food handling crates

July 30, 2014 1:37 pm ET

British retail group Sainsbury's has contracted Dutch recycler Schoeller Allibert BV to reprocess all of its old food crates back into food-grade...    More

Unipex Group buys Ferguson Chemical Innovation

July 29, 2014 1:57 pm ET

Chemical distributor Unipex Group Inc. announced July 29 that it had purchased Ferguson Chemical Innovation, a Brampton, Ontario-based supplier of...    More

Image

Universal Polymer beefing up capabilities through acquisition

July 29, 2014 12:04 pm ET

Universal Polymer & Rubber Ltd. is growing again and adding to its capabilities, this time via another acquisition and a plant expansion.    More

Image

Reynolds considering sale of Closure Systems International unit

July 29, 2014 10:32 am ET

Packaging giant Reynolds Group Holdings Ltd. has put its closures business under review.    More

Market Reports

Plastics Recyclers Data Report & Directory

This exclusive MS Excel database contains all the companies from Plastics News' ranking of top North American Recyclers and Brokers by reprocessed volume and also includes a directory with materials processes, services offered and company contact information. Data is based on primary research by PN editorial staff.

Learn more

2014 Injection Molding Industry Report

GROWTH, OPPORTUNITY IN SIGHT FOR INJECTION MOLDERS IN 2014

In the wake of the economic turbulence earlier in this decade, molders today find themselves in much better shape. Molders are gaining a competitive advantage by investing in people, equipment and seeking inroads into new markets on a global scale.

Growth in the injection molding industry is going to be driven by low financing costs and a continued move to reshore some business.

Learn more

Shale Gas Market - Analysis of North American Region

This report highlights the impact of shale-based natural gas on the North American plastics market and features an in-depth analysis of production trends in the United States during 2013 and a forecast for 2014 and beyond.

Learn more

Upcoming Plastics News Events

September 10, 2014 - September 12, 2014Plastics Caps & Closures 2014

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

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

More Events