Charter Oak, Fonds de solidarité FTQ recap Licaplast Industries

U.S. private equity firm Charter Oak Equity and Fonds de solidarité FTQ have recapitalized Licaplast Industries Emballages Inc, a Montréal-based vertically-integrated producer of flexible plastic packaging.

No financial terms were disclosed.

Licaplast, established in 1988 and led by CEO Joseph Nawar, develops and manufactures shrink film, laminated roll stock, pouches, and other products for food and beverage customers in Canada and the United States.

Charter Oak Managing Partner Paul Roughan said his firm will support the company’s add-on acquisition strategy.

PRESS RELEASE

Charter Oak Equity and Fonds de solidarité FTQ Complete Recapitalization of Licaplast Industries

WESTPORT, Conn. and MONTREAL, Oct. 25, 2018 /PRNewswire/ — Charter Oak Equity, LP (“Charter Oak”), a private equity firm headquartered in Westport, CT, and Fonds de solidarité FTQ are pleased to announce the recapitalization of Licaplast Industries – Emballages Inc. (“Licaplast” or the “Company”). Licaplast is a vertically-integrated producer of flexible plastic packaging, including shrink film, laminated roll stock and pouches, for food and beverage customers in the US and Canada. The Company extrudes its own film for printing and also features add-on laminating and slitting capabilities. Led by Joseph Nawar, Licaplast has been producing flexible films for packaging, printing, and specialty applications since 1988 and recently made investments to double production capacity at its Montreal facility.

Zubin Avari, Charter Oak Managing Partner, remarked, “The management team has built an outstanding reputation based on manufacturing excellence and superior customer service. We look forward to working with Joseph and the rest of the team.” Paul Roughan, Charter Oak Managing Partner, added, “We are excited about this platform investment and will be actively looking for add-ons in this space.”

Licaplast CEO, Joseph Nawar commented, “Licaplast’s unique value proposition and its dedication to quality have yielded strong growth in recent years, particularly since the installation of our new extruder. The Company is committed to delivering superior products and services to our customers, an objective this recapitalization will help augment.”

For his part, Jean Wilhelmy, Senior Vice-President for Investments, Private Equity, at the Fonds de solidarité FTQ said, “Licaplast’s effort to use recycled plastics, as well as the reuse of production waste, testify to the company’s commitment to develop and manufacture environmentally sustainable packaging products. Today, such an approach is essential to meeting the needs of the agri-food sector.”

ABOUT LICAPLAST
Headquartered in Montreal, Licaplast is a vertically-integrated producer of flexible plastic packaging, including shrink film, laminated roll stock and pouches, for food and beverage customers in the US and Canada. Founded in 1988, the Company serves a diverse set of customers by leveraging best in class operations, product development and customer service capabilities.

ABOUT CHARTER OAK
Charter Oak Equity and its predecessor funds have invested in private equity since 1992. Charter Oak focuses on niche manufacturing, packaging, medical products & services, specialty chemicals, consumer products and financial services companies up to $150 million in enterprise value. To date, over $500 million in control-oriented capital has been invested in 30 portfolio companies through over 50 acquisitions.

ABOUT THE FONDS DE SOLIDARITÉ FTQ
The Fonds de solidarité FTQ is a development capital investment fund that channels the savings of Quebecers into investments. As at May 31, 2018, the organization had $14.3 billion in net assets, and through its current portfolio of investments has helped create and protect 194,746 jobs. The Fonds is a partner in 2,839 companies and has 667,417 shareholder-savers.

For more information, visit http://www.charteroak-equity.com/ or call Doni Perl at (203) 221-4752.

http://www.charteroak-equity.com