Blue Point Capital Partners has exiting its stake in Packers Holding, selling the company to Harvest Partners. The sale yielded a 6x return for the middle market private equity firm. Specific terms of the sale to Harvest Partners were not released. Blue Point invested in Packers Holdings from its $400 million fund, Blue Point Capital Partners II L.P. Packers Holdings is a provider of outsourced cleaning and sanitation services to the food processing industry.
Blue Point Capital Partners, LLC announced today that it has sold its interest in Packers Holdings LLC to Harvest Partners, generating a return of 6.0x invested capital. Blue Point invested in Packers Holdings from its 2007 vintage fund, Blue Point Capital Partners II, L.P. – a $400 million lower middle market buyout fund.
Packers Holdings, through its subsidiaries including Packers Sanitation Services Inc. (PSSI), is North America’s largest and only nationwide provider of mission-critical outsourced cleaning and sanitation services to the food processing industry. The Company, headquartered in Twinsburg, Ohio, was the pioneer in this segment and continues to capitalize on the growing outsourcing trend by its largest customers. With more than 9,000 employees and 290 serviced locations, Packers is a clear market leader and serves a blue chip customer base of major food processors.
“Packers embodies many of the elements of a quintessential Blue Point deal, and we are certainly pleased with the results,” said John LeMay, a partner with Blue Point. “We partnered with the owner of PSSI, a local Cleveland entrepreneur, to recapitalize the business in April 2007. Together with management, we brought outside industry resources to the Company’s board, broadened its leadership team, expanded its presence in the non-protein food industry and embarked on an acquisition program that resulted in the purchase of two businesses, which together were the largest competitor to PSSI.”
David Given, a managing partner with Blue Point, said, “We enjoyed a terrific partnership with the excellent management team including Chairman Dan Zelman and CEO Jeff Kaiser and are grateful for their role in achieving this outcome.”
Dan Zelman added, “Blue Point proved to be a valuable partner as we were able to grow EBITDA more than 250 percent over the last four years. Packers and our management team benefited from the strategic, operational and transactional resources Blue Point brought to bear, and we are now well positioned as we enter this next phase of growth for the Company.”
Blue Point Capital Partners (www.bluepointcapital.com), with offices in Charlotte, Cleveland, Seattle and Shanghai, is one of the largest and most active resident middle market private equity firms in each of its target markets and focuses principally on investments in manufacturing, distribution and service businesses that primarily address commercial and industrial markets. Blue Point’s presence in the economies of both the United States and China positions the firm to create value by helping its investee firms to globalize. Blue Point has extensive experience in identifying, evaluating and successfully completing a variety of private equity investment transactions, including recapitalizations, management buyouts, corporate divestitures and industry consolidations. The principals of Blue Point have completed over 100 investments with a total transaction value of more than $2 billion.