PET food-packaging thermoformer Peninsula Packaging Co. LLC, an industry leader in providing packaging with recycled content and operating with green principles, has been acquired by private equity investment firm Odyssey Investment Partners LLC.
According to a report on Thompson Reuters' Private Equity Hub a public forum for private equity investors Odyssey bought Peninsula during a recent auction run by BMO Capital Markets, for an amount that is around seven times Peninsula's earnings before interest, taxes, depreciation and amortization.
The report also said BMO is helping to arrange a financing package that would give Peninsula a 2.5 to 3.6 times debt-to-EBITDA ratio.
Neither Peninsula nor Odyssey responded to requests for comment.
Peninsula, an 11-year-old firm based in Exeter, Calif., has capacity to process more than 100 million pounds of PET annually at its plants in Wilson, N.C., and Exeter, and uses more than 25 million pounds of recycled PET a year. Its annual sales are estimated at $85 million.
The company's packaging products use anywhere from 20-100 percent recycled PET, and the average recycled content in its 250 products is about 50 percent. Peninsula makes packaging for produce, baked goods, prepared foods and grab-and-go foods at convenience stores.
Peninsula has a 10-acre solar farm in Exeter that provides 50 percent of the power needed for its 350,000-square-foot plant. The 1.1-megawatt photovoltaic solar farm is the largest privately funded solar installation of its type in North America, according to the company.
The Wilson plant is 110,000 square feet.
In an interview one year ago with Plastics News, Peninsula General Manager Ed Byrne said the firm planned to make all of its food-packaging products with 100 percent recycled content and to use renewable energy to operate its Exeter plant within three years.
In addition, Peninsula vice president of new market development, Allen Kidd, projected that within three to five years, the company would achieve sales of between $150 million to $200 million. All that is limiting our growth is the ability to expand with new equipment, new products and new facilities, he said at that time.
About one year ago Byrne was in talks to build a $6 million food-grade recycled PET plant in Modesto, Calif. But that project did not materialize, in part due to the California state budget crunch that last April halted grants for recycling projects.
Odyssey, based in New York, has acquired three firms in the past three months: a diagnostic imaging consulting firm, One Call Medical Inc. in Parsippany, N.J.; Safway Services LLC, a Waukesha, Wis.-based provider of scaffolding services in the U.S. and Canada; and Wencor Group, a Springville, Utah-based distributor of commercial aircraft components.
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