Castle Harlan has entered into an agreement to acquire Pretium Packaging, a manufacturer and distributor of plastic containers and closures. In conjunction with the closing of the deal, Pretium will acquire Novapak, a rival of Pretium's that also makes specialty plastic containers. Together the two transactions are valued at approximately $200 million. Combined, the company will have annual revenues of approximately $240 million with more than 500 customers. Novapak is currently owned by Kirtland Capital.
Private equity firms have invested in 69 packaging companies since the beginning of 2007, according to the PitchBook platform. 2009 was the slowest of the past three years for the industry with 14 completed deals, less than the 18 in 2008 and only 36% of the 38 deals done in 2007. Plastic packaging companies were the top sub-sector with 25 completed deals followed by paper packagers with 15 deals. Graham Partners is most active investor in packaging with 4 completed deals, followed by Apollo Investment Management and Sun Capital Partners, with three apiece.