Pretium Packaging LLC, one of the largest packaging blow molders in North America, has a new private equity owner.
Santa Monica, Calif.-based Clearlake Capital Group LP announced Jan. 15 that it has purchased Pretium from Genstar Capital LLC.
San Francisco-based Genstar has owned Pretium since 2014. Terms of the deal were not disclosed.
Under Genstar's ownership, Pretium has been on an acquisition spree. That will continue under Clearlake, according to Arta Tabaee, managing director of the investment firm.
In a news release, Tabaee said Clearlake will support Pretium CEO Paul Kayser and his team "in completing strategic acquisitions in this highly fragmented market."
Kayser added in an email that Clearlake provides a partner to "scale the business to over $1 billion in revenue."
"Additionally, with Clearlake's guidance and expertise, we expect to accelerate our acquisition strategy to rapidly scale our business and go deeper in markets such as healthcare, nutrition and beauty," Kayser said.
Pretium is No. 14 on Plastics News' ranking of North American blow molders, with sales of $425 million. The company has 19 plants and 1,800 employees. Key end markets include food and specialty beverage, health care, sports nutrition, personal care, beauty and household products.
The Chesterfield, Mo.-based company primarily molds PET, high density polyethylene and polypropylene, including both virgin and post-consumer resins.
Pretium focuses on customers in the small-to-medium run market where orders can range from maybe a million to 20 million units per year. That's a sweet spot where Pretium can use its flexibility and automation expertise, Kayser said in a 2019 interview.
Clearlake does not currently own any other plastics processing companies, according to a list of portfolio firms on its website. The company touts its Operational Improvement Approach to acquisitions, a proprietary framework that offers firms "resources and expertise that small- and medium-sized companies typically do not possess."
In the release, Kayser said: "We are thrilled to welcome Clearlake as Pretium continues driving organic growth and executes our platform consolidation strategy. With strategic resources, operational insights, and support from Clearlake, we look forward to continuing to deliver quality rigid packaging solutions to our valued customers."
Pretium's recent acquisitions include Custom Blow Molding of Escondido, Calif., in 2016; Patrick Products Inc. of Leipsic, Ohio, in 2017; Cox Container LLC of Troy, Ala., in 2018; and two deals in 2019: Olcott Plastics Inc. of St. Charles, Ill., and Starplex Scientific Inc. of Toronto.