A private equity investment firm has agreed to buy two blow molders of specialty packaging, the companies said Jan. 18.
Castle Harlan Inc. announced that it has an agreement to buy Pretium Packaging LLC of Chesterfield, Mo. In addition, Castle Harlan said Pretium will acquire PVC Container Corp., the parent of Novapak Corp.
The total transaction valued at about $200 million is subject to the satisfaction of various conditions, the companies said in a news release.
Castle Harlan said the new company, which will carry the Pretium name, will have annual sales of about $240 million and will operate 14 manufacturing plants in the United States and Canada.
Pretium which makes custom-designed plastic containers for the food, pharmaceutical, personal-care and household markets is being sold by founder Keith Harbison, who will retain a significant minority stake as a partner in the company and sit on its board.
PVC Container Corp., based in Eatontown, N.J., is being sold by Kirtland Capital, a Cleveland-based private equity firm. Kirtland officials could not be reached for comment.
Pretium management will continue to operate the company, along with certain members of Novapak's management team, according to a news release.
Pretium will gain in product offerings and innovative packaging designs, Pretium President and CEO George Abd said in the release.
There is very little overlap in customers between [Pretium and PVC Container], which will enable Pretium to offer a broader range of products and services to an existing customer base, William Pruellage, Castle Harlan's senior managing director, said in the release. 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.
According to Plastics News' most recent industry ranking, Pretium was the No. 21 blow molder in North America, with $163 million in sales for its fiscal 2008. The firm employs about 770 at nine factories.
Eatontown-based Novapak was No. 28, with estimated 2008 sales of $93 million, 525 employees and five plants.
Castle Harlan, founded in 1987, invests in controlling interests in the buyout and development of middle-market companies in North America and Europe.
The New York-based company manages investment funds with equity commitments of $2.5 billion. Castle Harlan's portfolio companies, which employ more than 42,000, include Associated Packaging Technologies of Chadds Ford, Pa., which thermoforms crystalline PET containers for the fresh- and frozen-food industries.
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