PLYMOUTH, MICH. (June 1, 12:45 p.m. ET) — A Goldman Sachs merchant banking unit plans to take a minority stake in North America's third largest blow molder, Plastipak Holdings Inc.
GS Capital Partners LLC and Plastipak announced the agreement May 31 but did not disclose terms or the size of the equity stake.
“My family and the Plastipak management team have built this company over the past half century by partnering with our customers and suppliers,” noted Plastipak founder and CEO Bill Young in a news release.
He added that GS Capital Partners will help Plastipak “build out our global footprint.”
Plastipak of Plymouth, Mich., had estimated North American blow molding sales of $1.51 billion for the year ended Oct. 29, 2011, according to Plastics News recent blow molders survey. It operates 13 blow molding plants in North America and also has operations in Brazil and Europe. It also is a major recycler through its Clean Tech Inc. division in Dundee, Mich. Plastics News recent recyclers' survey listed it as the fourth largest recycler with an estimated volume of 250 million pounds in 2011. Clean Tech expanded its Dundee facility last year, a move that increased availability of recycled PET for its consumer products customers.
Plastipak, a supplier to multinational consumer product companies, last year sold about 21 billion preforms and bottles to more than 450 customers from 29 manufacturing plants, the firm claimed in a news release.
“Plastipak has an industry-leading management team and a world-class portfolio,” stated GS Capital managing director Henry Cornell. “We look forward to working alongside the company's current executives and the Young family to continue to drive growth globally.”
The GS Capital Partners group of funds have invested more than $82 billion since 1986. Packaging is one of the industrial areas in which they hold equity.
The Young family established Plastipak in 1967. They will continue to hold a majority position in the company when the transaction is concluded after completion of regulatory approvals.
Plastipak blow molds high density polyethylene, PET, polypropylene and post-consumer resins. It uses a wide range of blow molding technologies supplying beverage, food, household chemicals, industrial chemicals, medical, industrial and personal care markets.
Its North American plants have a geographic reach from Modesto, Calif., to East Long Meadow, Mass.