Oak Hill Capital Partners has agreed to acquire Berlin Packaging, which supplies packaging products in North America, for $1.43 billion. Oak Hill has agreed to buy the company from Investcorp. The deal, subject to closing conditions, is expected to close in the third quarter.
Oak Hill Capital Partners (“Oak Hill”), a leading private equity firm, announced today that it has entered into a definitive agreement to acquire Berlin Packaging LLC (“Berlin Packaging”), a leading supplier of rigid packaging products and services in North America, from Investcorp. Oak Hill is investing in partnership with Berlin Packaging’s current management team, led by Chairman and CEO Andrew Berlin. The transaction is valued at $1.43 billion.
Founded in 1898 and guided by a company culture focused on growing the bottom lines of its customers, Berlin Packaging combines the best attributes of manufacturers, distributors, and income-adding service providers to serve thousands of customers with an unparalleled track record of 99% on-time delivery. Berlin Packaging’s end-to‐end operations across the supply chain provide customers of all sizes in all industries with a one-stop-shop for all their packaging needs. Berlin Packaging’s broad offering of services includes structural and brand design, worldwide sourcing, warehousing and logistics, and capital financing.
Tyler Wolfram, Managing Partner at Oak Hill, said, “Berlin Packaging is a high-caliber business experiencing double-digit growth and targeting a large addressable market opportunity. We are excited to partner with Andrew Berlin and his talented team to support the company through its next phase of growth, as the company expands organically and through strategic acquisitions. The transaction is representative of Oak Hill’s theme-based investment approach and long history of partnering with world-class entrepreneurs and management teams.”
Andrew Berlin commented, “We are extremely pleased to be partnering with Oak Hill. Oak Hill has a longstanding history of building superior businesses and a reputation for strong partnership with management. It was important to join with a firm that shares the same culture and belief system as Berlin Packaging and that is committed to growing our company by offering increased value to our customers, suppliers, and employees. I know Oak Hill will be a tremendous partner for us. We would also like to thank Investcorp for their partnership over the last seven years.”
Brian Cherry, Partner at Oak Hill, said, “We have tremendous respect for Berlin Packaging’s heritage and are very excited about its prospects for continued strong performance. Berlin Packaging is a juggernaut that already grows multiple times faster than the packaging industry, and we look forward to further bolstering the company’s best-in-class business model and customer focus to continue its growth trajectory.”
Kevin Nickelberry, Managing Director at Investcorp, said, “Andrew Berlin and the entire Berlin Packaging management team have done an outstanding job of building a market leading company with a highly differentiated business model and a track record of strong financial performance. Over the course of our partnership, Berlin Packaging improved its profitability, delivered strong organic growth, and executed several strategic add-on acquisitions. We are proud of what we accomplished with the Berlin Packaging team and we wish them continued success with Oak Hill.”
The transaction, which is subject to HSR approval and other customary closing conditions, is expected to close in the third quarter of 2014.
Barclays Capital and Deutsche Bank acted as financial advisors to Berlin Packaging in the transaction. Morgan Stanley acted as exclusive financial advisor to Oak Hill in the transaction. Deutsche Bank AG New York Branch, Deutsche Bank Securities Inc. and Morgan Stanley Senior Funding Inc. have underwritten and will arrange first and second lien financing in connection with the transaction. Gibson, Dunn & Crutcher LLP is serving as legal counsel to Berlin Packaging and Investcorp. Paul, Weiss, Rifkind, Wharton & Garrison LLP is serving as legal counsel to Oak Hill.
About Berlin Packaging
Berlin Packaging is North America’s only Hybrid Packaging Supplier of plastic, glass, and metal containers and closures. See PaintTheTarget.com and GreaterFaster.com for more on how the company exists to help people and companies excel. With over 33,000 available SKUs, over 120 packaging consultants, and more than 90 sales and warehouse locations across North America, the company has the right products, expertise, and geographic proximity to help customers increase their net income through packaging products and services. Berlin Packaging supplies billions of containers and closures annually as well as warehousing and logistics services for customers of all sizes in all industries. It is the only company in its sector to be ISO 9001 certified, to have Customs-Trade Partnership Against Terrorism (C-TPAT) certification, and to achieve 99% on-time delivery of its shipments every month for over ten years. Related services and specialty product divisions include Studio One Eleven custom packaging and graphic design, Berlin Global sourcing solutions, E3 profit-oriented consulting, Berlin Financial financing for equipment and capital improvements, Dangerous Goods transport, Freund Container & Supply convenience, and Qorpak laboratory supplies. The company can be reached at 1.800.2.BERLIN, BerlinPackaging.com, and on LinkedIn and Twitter.
About Oak Hill Capital Partners
Oak Hill is a private equity firm with more than $8 billion of initial capital commitments from leading entrepreneurs, endowments, foundations, corporations, pension funds, and global financial institutions. Since inception 28 years ago, the professionals at Oak Hill and its predecessors have invested in more than 70 significant private equity transactions across broad segments of the U.S. and global economies. Oak Hill applies an industry-focused, theme-based approach to investing in the following sectors: Consumer, Retail & Distribution; Industrials; Media & Communications; and Services. Oak Hill works actively in partnership with management to implement strategic and operational initiatives to create franchise value.
Investcorp is a leading provider and manager of alternative investment products and is publicly traded on the Bahrain Bourse (INVCORP). The Investcorp Group has offices in New York, London, Bahrain, Saudi Arabia and Abu Dhabi. Investcorp has three business areas: corporate investment in the US, Europe and the Gulf, real estate investment in the US and global hedge funds. As at June 30, 2014, Investcorp had $11.4 billion in total assets under management. Further information, including our most recent periodic financial statements, which details our assets under management, is available at www.investcorp.com.
Statements included herein may constitute “forward-looking statements”, which relate to future events, or the future performance, or financial condition of Berlin Packaging following the acquisition of Berlin Packaging by Oak Hill. These statements are not guarantees of future performance, condition, or results and involve a number of risks and uncertainties. Actual results and condition may differ materially from those in the forward-looking statements as a result of a number of factors.