Private equity firm HIG Capital is acquiring Action Point Inc. and Signature Flexible Packaging Inc. and combining them into a single company making flexible food and consumer packaging.
The combination of Los Angeles-based Action Point and Signature of Carson, Calif., provides small and midsized consumer packaged goods customers with a one-stop solution for flexible packaging needs — across snacks, meats, candies and baked goods, officials with Miami-based HIG said in a Jan. 5 news release. Products made by Action and Signature include rollstock, pouches and bags.
The combined firm operates three California plants — in Carson, City of Industry and Commerce — that provide "consistent quality, unrivaled lead times and a high-touch service model which supports low minimum order quantities," they added.
HIG is partnering with Action CEO Howard Applebaum, Signature CEO Adrian Backer, Action executive vice president Federico Giacobbe and other management team members in the deal. Officials said the partnership will provide capital and resources for strategic growth initiatives and consolidation opportunities in the flexible packaging industry.
"The company has numerous opportunities to expand and HIG's capital and resources, particularly around M&A, will help us continue our successful growth trajectory," Backer said in the release.
HIG Managing Director Ryan Kaplan added that the combination of Action and Signature "represents an ideal opportunity to create a premier flexible packaging platform at a time when market tailwinds such as changing consumer preferences and shifts to lower-cost packaging should continue to drive growth."
HIG currently has $42 billion in capital under management. Its current portfolio includes more than 100 companies with combined annual sales of more than $30 billion.
Chicago M&A firm Blaige & Co. represented Action and Signature in the deal. Blaige CEO Thomas Blaige said in a news release that his firm worked with the two companies over a two-year period to develop a detailed joint business model that demonstrated the strength of a combined platform.
"Despite the pandemic, the focused marketing process brought forth multiple options and culminated in the selection of the best partner for establishing and growing the platform," he added.