A private equity firm is cashing out its investment in Pregis LLC, turning the protective packaging and systems maker over to another investment firm.
Olympus Partners is selling the Deerfield, Ill.-based company after five years of ownership and a series of acquisitions that saw Pregis grow from 14 to 22 manufacturing sites in North America and Europe.
New owner Warburg Pincus LLC is retaining CEO Kevin Baudhuin and current management as it takes control of the company.
Terms of the deal were not disclosed.
Baudhuin, who has been CEO since 2012 and with the company since 2007, said his company expects to continue its growth under new ownership.
"Backed by their extensive network of knowledgeable resources and global perspectives, we are confident that Warburg Pincus will further accelerate our future growth," he said in a statement.
The sale of Pregis is not unusual in the world of private equity investing. These firms look to build value in their acquisitions and cash out typically within three to seven years, depending on the specific circumstances of the investment.
"Pregis aligns well with our industrials investing strategy to partner with best-in-class companies and management teams with attractive growth tailwinds including e-commerce enablement and automation," Warburg Pincus Managing Director Dan Zamlong said in a statement.
Pregis has grown during the past five years through both external deals and investments in existing operations.
Acquisitions made during the past five years include Eagle Film Extruders, Easypack, Sharp Packaging Systems, 3M Polymask, Rex Performance Products and FP International, the company said.
The internal investments include a series of improvements at its Grand Rapids, Mich., location including the recent installation of a new $6 million multilayer blown film line. That's the third such system installed at the location since 2016.
The latest investment follows projects in the past few years that saw the company spend a combined $23 million on two previous five-layer lines as well as converting equipment at the facility. Those projects also increased production space, the company said.
Pregis cited increased demand for flexible packaging, electronic commerce protective material and surface protection films when announcing the recent addition in April.
The company also has spent $10 million to make improvements at its Sussex, Wis., flexible packaging plant, a project that included a new blown film line and enhanced printing capabilities. Pregis acquired that site in 2017 from Sharp Packaging Systems.
The company makes protective packaging materials, equipment systems and surface protection products for an array of market segments, including include food, pharmaceutical, health care, agriculture, automotive and transportation. The company also serves the furniture, electronics, building, construction, military and aerospace segments.
Olympus acquired the North American operations of Pregis from AEA Investors LP in 2014. AEA owned owned the company since 2005. Pregis later established a presence in Europe.
AEA Investors created the Pregis brand when that private equity firm acquired the flexible and protective businesses of Pactiv Corp. in 2005.
Pregis ranked No. 12 in the most recent Plastics News list of North America film and sheet producers with estimated annual sales of $600 million in that sector and overall estimated annual sales of $700 million.
Warburg Pincus has more than $58 billion of investments involving more than 180 companies, according to its website. They include Gabe's, a regional discount clothing chain with about two dozen stores concentrated in Ohio, Pennsylvania, West Virginia, Maryland and Virginia.
