Flexible packaging company ProAmpac is acquiring one of the nation's largest makers of pet food packaging.
The deal for Gateway Packaging Co. of White House, Tenn., also gives ProAmpac additional business in human care and institutional markets, the company said.
"The acquisition of Gateway expands our product offering with the addition of multi-wall bags while also increasing our manufacturing capacity of several pouch formats," ProAmpac CEO Greg Tucker said in a statement.
ProAmpac, based in Cincinnati, has been in an acquisition mode since its 2016 purchase by a predecessor to PPC Partners of Chicago, an investment firm headed by billionaire Tony Pritzker. PPC Partners was formed in April as the exclusive acquirer of middle-market companies for Pritzker Group Private Capital.
PPC Partners said it invests "on behalf of certain Pritzker and other long-term focused family and institutional investors."
Tony and brother J.B. Pritzker founded Pritzker Group Private Capital, which originally acquired ProAmpac with plans to use the company as a platform for its entry into the flexible packaging business. J.B. Pritzker is the Democratic nominee in the race for Illinois governor this year.
It was just last month that ProAmpac also acquired Pactech Packaging of Rochester, N.Y., in a deal that expanded its pouch business.
Gateway will become part of ProAmpac's extrusion and laminations division.
"Gateway's talented team, multi-wall bag converting expertise, and presence in the pet and institutional markets will add to ProAmpac's competencies and existing customer base. This acquisition will create value and opportunity for both organizations," said Gateway CEO Omar Abuaita in a statement.
Gateway brings a total of four locations to ProAmpac, including a warehouse in North Kansas City, Mo.
On Jan. 1, 2017, Gateway said it acquired the assets of Werthan Packaging Inc. of White House to go along with operations in Kansas City, Mo., and Granite City, Ill.
Gateway Packaging has been owned by Saw Mill Capital Partners LP, a private equity firm in Briarcliff Manor, N.Y., and members of management since 2010.
ProAmpac now as 33 global locations and nearly 3,700 employees. The company supplies more packaging to more than 5,000 customers in 90 countries.
