Leonard Green & Partners to Acquire ProMach from AEA Investors
Jan 29, 2018ProMach plans continued strong growth in the global packaging machinery marketplace
CINCINNATI, Ohio – ProMach, a leader in packaging machinery solutions, announced today that affiliates of Leonard Green & Partners, a leading private equity investment firm, have entered into a definitive agreement to acquire the company from affiliates of AEA Investors. Financial terms of the transaction were not disclosed.
Founded in 1998, ProMach is a family of best-in-class packaging solution product brands serving manufacturers of all sizes, geographies, and industries. ProMach product brands operate across the entire packaging spectrum providing solutions for nearly every application, including integration and engineering services for complete integrated packaging lines.
“We are excited to be partnering with Leonard Green as we enter our next phase of growth,” said Mark Anderson, President and CEO of ProMach. “The industry has changed dramatically over the past two decades, and so has ProMach. Through our strong partnership with AEA, and thanks to the hard work of every one of our dedicated employees, ProMach has become something truly remarkable. Our entire management team is looking forward to working with Leonard Green as we continue to build on our position as the premier provider of packaging line solutions across the globe. The team at Leonard Green has a strong reputation, understands our business, shares our vision, and most importantly shares our passion to fulfill our highest priority – serving our customers.”
ProMach’s portfolio of product brands includes Allpax, Axon, Benchmark, Brenton, Dekka, Edson, EPI, Federal, Greydon, ID Technology, KLEENLine, Matrix, NJM, Orion, Ossid, P.E. Labellers, Pace, Pacific, PackLab, Rennco, Roberts PolyPro, Shuttleworth, Texwrap, Wexxar Bel, WLS, Zalkin, and ZPI, along with the ProMach Performance Services line.
“ProMach has built an outstanding business model and has a proven track record of doing exactly what they say they’re going to do, through multiple ownership cycles,” said Chris McCollum, Partner at Leonard Green & Partners. “Our investment philosophy is to partner with market-leading companies with multiple ways to grow, backed by best-in-class management teams. ProMach exemplifies this in a nearly unrivaled way in the packaging machinery space, making it an ideal fit. They are poised for continued strong growth and long-term success and we are very excited for this new partnership.”
Leonard Green & Partners, based in Los Angeles, is a leading private equity investment firm with more than $25 billion of assets currently under management. Since its founding in 1989, the firm has invested in over 90 companies primarily in the consumer services, business services, healthcare services, and retail sectors.
“We are extremely proud of the growth ProMach has achieved throughout our successful partnership,” said Tom Pryma, Partner at AEA Investors. “At the onset with ProMach we mutually agreed on our long-term vision and goals for the business and their management team has delivered – meeting or exceeding every goal along the way. Together, we firmly established ProMach as a market leading, highly scalable, global packaging company with strong brand equity that is well positioned for success for years to come. We wish the ProMach team continued success under Leonard Green’s ownership.”
The transaction is expected to be completed in the first quarter of 2018 and is subject to customary closing conditions.
Morgan Stanley & Co. LLC served as lead financial advisor to ProMach. Goldman Sachs & Co. LLC also provided financial advice to ProMach. Fried, Frank, Harris, Shriver & Jacobson LLP and Thompson Hine LLP acted as legal advisors to ProMach. Latham & Watkins LLP served as legal advisors to Leonard Green & Partners. Morgan Stanley Senior Funding, Inc. and Goldman Sachs & Co. have underwritten and will arrange debt financing in connection with the transaction for Leonard Green & Partners.
About Leonard Green & Partners
Leonard Green & Partners, L.P. (“LGP”) is a leading private equity investment firm founded in 1989 and based in Los Angeles. The firm partners with experienced management teams and often with founders to invest in market-leading companies. Since inception, LGP has invested in over 90 companies in the form of traditional buyouts, going-private transactions, recapitalizations, growth equity, and selective public equity and debt positions. The firm primarily focuses on companies providing services, including consumer, business, and healthcare services, as well as retail. For more information, please visit www.LeonardGreen.com.
About AEA Investors
AEA Investors LP was founded in 1968 by the Rockefeller, Mellon, and Harriman family interests and S.G. Warburg & Co. as a private investment vehicle for a select group of industrial family offices with substantial assets. AEA’s active individual investors (the “Participants”) include an extraordinary network of more than 75 highly successful business executives, industrial families, and former government leaders. Today, AEA’s approximately 70 investment professionals operate globally with offices in New York, Connecticut, London, Munich, and Shanghai. The firm manages funds that have approximately $10 billion of invested and committed capital, including the leveraged buyouts of middle market companies and small businesses and mezzanine and senior debt investing. AEA Private Equity invests across four sectors: value added industrial products, specialty chemicals, consumer products / retail and services. For further information about AEA, please visit www.AEAInvestors.com.
About Matrix
Matrix is an industry leading manufacturer of rugged, cost competitive, and easy-to-use vertical form fill seal (VFFS) equipment for all types of flexible packaging and operates as a master distributor of INVpack stickpack and sachet machines, and Pacraft pre-made pouch packaging machines. With more than 30 years of flexible packaging expertise, Matrix has the ability, knowledge, and commitment to tailor highly efficient and profitable packaging systems for our customers on a global scale. Matrix is a product brand of ProMach, a global leader in packaging line solutions. As part of the ProMach Flexibles & Trays business line, Matrix helps its packaging customers protect and grow the reputation and trust of their consumers. ProMach is performance, and the proof is in every package. Learn more about Matrix at www.MatrixPM.com and more about ProMach at www.ProMachBuilt.com.
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