Castle Harlan to acquire two plastic container firms for $200 million
19 Jan 2010
Private equity investment firm Castle Harlan yesterday agreed to acquire two plastic container makers, Pretium Packaging and rival PVC Container Corporation, in deals at a combined valued of $200 million.
The New York-based Castle Harlan said yesterday that it has agreed to acquire Chesterfield, Missouri-based Pretium Packaging, one of the leading manufacturers of custom-designed specialty plastic containers for the food, pharmaceutical, personal-care and household markets in the US.
After closing of the Pretium transaction, expected in the first quarter of 2010, Pretium will acquire New Jersey-based PVC Container Corporation, the parent of Novapak Corporation, which also makes specialty plastic containers in a combined deal valued at $200 million.
Castle Harlan said the combined company will operate under the Pretium name and will have annual sales of approximately $240 million and 14 manufacturing plants in the US and Canada serving more than 500 customers.
Pretium is being sold by founder Keith Harbison, who will retain a significant minority stake as a partner in the company and sit on its board of directors and its management will continue to operate the company, along with certain executives of Novapak's management team.
Novapak is being sold by Kirtland Capital, a Cleveland-based private equity investment firm.
Castle Harlan, founded in 1987, invests in controlling interests in the buyout and development of middle-market companies in North America and Europe. It has made 50 acquisitions since its inception with a total value in excess of $9 billion.