PPC Flexible Packaging LLC is getting a new majority owner as the company's original private equity backer is cashing out on its investment.
Morgan Stanley Capital Partners sold the Buffalo Grove, Ill.-based PPC to investment firm GTCR LLC of Chicago, but management will continue to hold what is described as a "significant minority stake," the new owner said.
PPC was formed by CEO Kevin Keneally in 2017 to convert and print films, bags and pouches. The company also provides packaging prototype services. The company's sweet spots include short- and medium-run orders.
PPC has used the financial support of MSCP to grow over time and GTCR calls the company a "top 20" flexible packaging manufacturer.
"Kevin and the PPC team have built a remarkable business in a short period of time by acquiring differentiated packaging assets focused on attractive end markets," GTCR Managing Director David Donnini said in a statement.
Keneally credited MSCP and said the company will continue to expand.
"Four years ago, I partnered with MSCP as our growth partner because we believed they had the track record, deep subsector expertise and operational focus to help build a leading player in the flexible packaging market," Keneally said in a statement. "MSCP has been a tremendous partner to the entire PPC team, continuously supporting our organic growth aspirations, operational initiatives and M&A capabilities."
And now, it's GTCR's turn, and the new majority owner of PPC is signaling intentions to further growth by "continuing their successful consolidation of high-quality flexible packaging companies."
GTCR, based in Chicago, was co-founded in 1980 by Bruce Rauner, who went on to later become governor of Illinois. Other companies in the private equity firm's portfolio include Vivid Seats, a live events ticket reseller, and Consumer Cellular, a mobile phone company aiming at an older demographic.
"We will continue to support our customers with exceptional service while expanding our product offering through innovation and acquisitions," Keneally said. "GTCR brings unique experience in building industry-leading companies and expects to commit additional capital to fund growth."
The change in private equity backers continues a busy year for PPC.
The company, less than a month ago, acquired Consumer Packaging Group Inc. of Hartland, Wis., a provider of rapid-turnaround prototypes and package samples for consumer products companies. PPC also purchased Target Labels & Packaging LLC of North Salt Lake, Utah, in May.