Pretium Packaging announces completion of its Merger with Novapak Corporation
Pretium Packaging LLC, a provider of custom blow molded packaging solutions with a primary focus in the food, pharmaceutical and personal care markets, in partnership with Castle Harlan Inc., a New York-based buy-out firm, and existing Pretium management, announces the completion of its merger with Novapak Corporation which was previously announced on January 18, 2010. The transaction is returning $8,572.42 per share in cash to holders of common stock in PVC Container Corporation, the parent company of Novapak.
The combined business will generate more than $240 million of blow molded bottle and injection molded pre-form sales to over 500 customers from 14 manufacturing facilities in the U.S. and Canada. The new entity will retain the name Pretium Packaging, be headquartered in Chesterfield, MO, and be managed by the current Pretium management team together with certain members of Novapak management.
Pretium’s President and CEO George Abd stated, “We are very excited to realize the opportunity this combined enterprise presents. Both Pretium and Novapak have focused on small to medium volume, custom bottle applications. Much of both companies’ recent growth has come in PET bottles. The advantage for both companies’ customers is that while Pretium has invested significantly in one-step, wide mouth PET technology and assets, Novapak has made significant investment in two-step, narrow neck PET and pre-form manufacturing. The combination of these world-class assets and capabilities, will allow the merged company to offer our customers a full range of one-step and two-step PET bottles, as well as extrusion blow molding and injection blow molding alternatives in HDPE and PP. In addition, there is very little overlap between the two companies’ current customers, enabling the company to now deliver a broader range of products and services to an already existing customer base. We are also thrilled to be aligned with Castle Harlan, which has a long history of partnering with management teams to realize shareholder value through superior customer service.”
Pretium Packaging was founded in 1992 to provide highly technical, blow molding supply solutions to customers with small to medium volume requirements. The company, headquartered in Chesterfield, MO, completed 11 acquisitions in the 1990’s and currently operates 9, ISO 9001:2000 rated manufacturing facilities in North America. Pretium produces blow molded plastic containers utilizing all major resin types with a primary focus on PET and HDPE and all processing technologies; single stage and two stage ISBM, IBM and EBM. While Pretium serves customers in most markets, more than 70% of the company’s sales are focused in the food, pharmaceutical and personal care markets. Pretium focuses on providing customers with leading edge unique design solutions with a dedicated focus on Quality, Service and Value.
Castle Harlan, founded in 1987, invests in controlling interests in the buyout and development of middle-market companies in North America and Europe. Its team of 19 investment professionals has completed 50 acquisitions since its inception with a total value in excess of $9 billion. Castle Harlan currently manages investment funds with equity commitments of $2.5 billion. The firm traces its roots to the start of the institutionalized private-equity business in the late 1960s. Castle Harlan’s current portfolio companies, which employ more than 42,000 people, include Ames True Temper, a leading manufacturer of lawn and garden tools and accessories; Baker & Taylor, the largest global distributor of books and entertainment products to libraries and retailers, and Associated Packaging Technologies, Inc., a leader in specialty packaging for the frozen food industry.
Novapak is a major producer of PET, PP, HDPE and in-line fluorinated HDPE containers for specialty chemical, personal care, healthcare, food, beverage, household and automotive applications. The company is headquartered in Eatontown, NJ, and operates five ISO 9001:2000 certified plants in New York, Pennsylvania, Illinois and South Carolina. The business specializes in small to medium volumes of medium to large size plastic bottles (8 oz & up) requiring rapid commercialization, customized designs and high package performance.