Investment firm KKR is buying a stake in film packaging maker Charter Next Generation Inc., and as part of the deal employees of the specialty extrusion firm will be given the opportunity to acquire ownership stakes.
Terms were not disclosed, but the companies said in a May 6 statement that KKR will be joining private equity firm Leonard Green & Partners LP as an equal co-owner of CNG. As well, a unit of the Abu Dhabi Investment Authority is investing to become a minority owner.
"We are looking forward to investing in the company's growth as they continue to raise the bar in innovation and sustainability," said Josh Weisenbeck, a KKR partner who leads the investment fund's industrials investment team.
The statement said a "cornerstone" of KKR's industrials strategy has been to allow employees of the firms it invests in "the opportunity to participate in the equity return alongside KKR."
"Offering all employees ownership in the company aligns everyone around our objectives while providing financial rewards for their efforts, fitting well with our employee-first culture," said CNG CEO Kathy Bolhous.
Charter Next Generation, based in Milton, Wis., was formed in 2019 from the merger of Charter NEX Films Inc. and Next Generation Films Inc. The two firms were formally combined in late 2020 and Bolhous became head of the new entity.
Separately, the two firms were ranked with combined sales of $975 million in the last Plastics News listing of North American film and sheet manufacturers in 2020, putting each of them in the top 20 measured by sales. The combination could put them in the top 10.
New York-based KKR said it's making the investment through its Americas XII Fund.