Tekni-Plex Inc, a Wayne, Pa.-based plastics processor with a diverse mix of processes and products, is about to have a new private equity owner.
Reuters reported Sept. 4 that Genstar Capital is “nearing a deal” to buy Tekni-Plex from American Securities for about $1.5 billion.
The story quoted people familiar with the matter, and said representatives from the three companies did not immediately respond to comment.
Plastics News sources have said in recent weeks that American Securities was looking for a buyer for Tekni-Plex.
Tekni-Plex products include PVC compounds, medical tubing, specialized film and sheet, closure liners and polystyrene packaging. Its brands include Colorite, Natvar, Tekni-Films, Tri-Seal, Action Technology and Dolco.
American Securities bought Tekni-Plex from Oaktree Capital Management in December 2013 for an undisclosed sum. At the time, Reuters reported the deal was worth up to $800 million.
According to Plastics News estimates, Tekni-Plex has sales of about $800 million, basically all in plastics products. Its diverse mix of products made it unlikely that a strategic buyer would be interested; speculation was that the sale would be to another private equity firm.
End markets include medical, pharmaceutical, personal care, household and industrial, and food and beverage industries. It has sites in eight countries.