Nicolet Capital Partners, LLC, a private equity firm in Chicago, IL, announced today that it has sold its investment in Pretium Packaging to private equity firm Genstar Capital who is acquiring the company in a $331 million transaction. Nicolet Capital acquired its investment in Pretium in a 2010 recapitalization in which Pretium and Novapak were acquired simultaneously and subsequently merged. Nicolet Capital generated a 20.7% IRR on its equity investment in Pretium. As part of the transaction, Pretium will redeem approximately $150 million of outstanding high yield notes. Other terms of the transaction were not disclosed.
Nicolet Capital has been extremely active as a seller, in particular, over the past year. Pretium marks the second successful exit from its portfolio of Plastics, Packaging and Converting businesses that Nicolet Capital has announced in the last six months. Nicolet Capital previously announced that it had sold Transilwrap Company, Inc., a convertor of plastic films, to private equity firm The Jordan Company.
Pretium manufactures preforms and blow molds rigid plastic containers for a diverse range of consumer, household and industrial products in low to mid volume applications. The company is one of the largest producers of plastic bottles in the U.S. reporting approximately $240 million in annual sales in 2013 and operates 10 manufacturing plants. Pretium serves over 500 branded and private label customers in the food and specialty beverage, pharmaceutical, personal care, household and industrial end markets.
Commenting on the sale transaction, Brett A. Snyder, President of Nicolet Capital stated, “Pretium’s strong market position, sustainable competitive advantages and reliable demand for its products made it an excellent fit for our investment strategy. However, it is management’s attention to detail and the strong control they exercise over their business that make it a great company. I have really enjoyed working with this team and having the opportunity to share our experience in the packaging segment with them. I know they will continue to have success and wish them the best.”
George Abd, President and CEO of Pretium added “Nicolet was a tremendous contributor to our success over the course of their investment. Their experience in the packaging market added great value in the continued development of our strategy and their insight on both business issues and financing strategy were invaluable to me and the Company. Not many financial sponsors can bring the depth and breadth of experience that Nicolet has in the packaging space to an investment, and it was our pleasure to have that expertise available as we grew the company together.”
About Nicolet Capital Partners, LLC:
Nicolet Capital Partners, LLC, located in Chicago, IL, is a private equity firm that makes both majority and minority equity investments in established businesses across a wide range of basic industries. The firm targets equity investments of $20-75 million in companies with distinct market positions that possess sustainable competitive advantages. Nicolet Capital has specific expertise in industries related to Plastics, Packaging and Converting. In addition to its equity capital, Nicolet Capital can provide complete, committed debt financing for its transactions. For more information on Nicolet Capital, please contact them at 847-563-5377 or visit their website at www.nicoletcap.com.