Plastics, Packaging and Converting Industry
- Entire value chain from base chemicals to finished products
- Manufacturing, distribution and service business models
- All materials including paper, plastic, elastomers, glass and metal
- Numerous printing, molding, forming, coating, compounding and finishing technologies
- Suppliers of equipment, consumable products, service providers and other ancillary business models that feed into industry value chain
Investment Size
- $20 – 75 million for new platform investments
- No minimums for add-on acquisitions to existing portfolio companies
Investment Structure
- Control and non-control equity
- Junior debt financing in concert with equity investment
Target Company Size
- At least $25 million of revenue
- At least $7 million of cash operating income (earnings before interest, taxes, depreciation and certain other non-cash charges “EBITDA”)
- No minimums for add-on acquisitions to existing portfolio companies
Types of Transactions
- Control buyouts from equity sponsors and private owners
- Corporate divestitures and management led buyouts
- Non-control recapitalizations and growth investments in private and closely held public companies
Geographic Preference
- Headquartered in North America
- Meaningful operations and revenue in North America
- No geographic constraints for add-on acquisitions to existing portfolio companies
Nicolet Capital’s investment process emphasizes top-down strategic analysis against our foundational parameters. These strategic considerations are at the core of every investment thesis and provide the necessary time and stability for us and our management partners to focus on long-term value creation.
Non-Discretionary Demand
- Products and services that have predictable long-term demand
- Products and services correlated with the business cycle are of interest provided long-term demand is predictable
Mature Market Dynamics
- Quantifiable market position and potential
- Identifiable competitors and predictable competitive intensity
- Market participants with well-defined product and service offerings and competitive advantages
Clear and Sustainable Barriers to Entry
- High service requirements, technical capabilities and other factors that increase customer switching costs and result in pricing power
- Equipment, key assets, licensing and permitting and other unique business considerations that are difficult to replicate in short-term
