Private equity group Ares Management Corp. and the Ontario Teachers' Pension Plan Board will acquire a majority of shares in St. Louis-based packaging distributor TricorBraun.
The transaction is expected to close in the first quarter of 2021, a Jan. 7 news release said.
TricorBraun's management team, including Keith Strope, executive chairman, and Court Carruthers, CEO and president, will continue in their roles "following the close of the transaction," the release said. The management team will also retain a "significant investment in the company, as will its current majority owner, AEA Investors."
"Ares and Ontario Teachers' are the right partners to help us expand on our steady growth as we continue to build the best place for the best people in packaging," Carruthers said.
"We have had a tremendously successful partnership with AEA, culminating with record sales in 2020, and we look forward to working with Ares and Ontario Teachers' to deliver even greater value to our customers and suppliers over the coming years," he added.
TricorBraun did not respond to request for comment by Plastics News.
The bulk of TricorBraun's business is in distribution, but it has one blow molding plant, in Lake Elsinore, Calif. The bottle making plant has an estimated $1 million in annual sales, placing the company at No. 121 in Plastics News' ranking of North American blow molders.
"We are proud of our work with Keith, Court and the TricorBraun management team to help drive growth through a number of successful initiatives, creating significant long-term value," said Tom Pryma, partner at AEA. "We value our strong partnership, and we are excited to continue our support of TricorBraun's growth strategies."
"TricorBraun is uniquely positioned to serve the requirements of the packaging industry," Karen Frank, senior managing director of equities at Ontario Teachers', said. "The company has made significant investments in top talent and operations and will seek to capitalize on those to drive long-term growth in the years ahead. We are thrilled to have the opportunity to partner with TricorBraun through its next chapter."
TricorBraun provides consumer packaged goods companies with personal care and household cleaning, food and beverage, and health care products including rigid and flexible packaging. It has more than 1,100 employees in 50 locations in North America, Europe and Asia.