Leonard Green & Partners LP will become the fifth private equity firm to own ProMach Group Inc, a U.S. packaging company.
The Los Angeles buyout shop agreed Jan. 29 to buy ProMach from AEA Investors. Financial terms weren’t announced but Reuters pegged the deal at $2.2 billion. The transaction is expected to close in first quarter.
ProMach, of Covington, Kentucky, makes packaging products, including bottle-capping machinery and labeling equipment, that are used mainly in the food, beverage, household goods and pharmaceutical industries. ProMach produced about $787 million in revenue for the 12 months ended May 2017, Moody’s Investors Service said. It employs 2,464 people, according to press reports.
Including its current deal with Green, ProMach has been sold four times. AEA, the current seller, bought ProMach for about $1 billion from Jordan Co in 2014, Reuters said. Jordan acquired it from Odyssey Investment Partners LLC in 2011.
Odyssey appears to have had the longest ownership of ProMach. It bought the company, which was then based in Atlanta, in 2004 from an investor group led by Frontenac Co. ProMach generated more than $150 million in revenue at the time.
Frontenac was ProMach’s original owner. The Chicago lower-middle-market firm provided the funds that helped launch ProMach in 1998. “We’re really proud to have founded and built a company that has continued to thrive under private equity ownership,” said Walter Florence, a Frontenac managing partner.
Frontenac started ProMach from scratch, built it through acquisitions and then sold it to a much larger buyer, Florence said. He declined to disclose how much they invested or how much the company was sold for in 2004. “It was 20 years ago,” he said.
In October, Frontenac’s 11th private equity fund closed on its $325 million hard cap. The firm invests in three sectors: food, industrial and business services. ProMach’s other owners have followed strategies similar to Frontenac’s, Florence said.
ProMach and Green could not be reached for comment.
Action Item: To contact ProMach CEO Mark Anderson call him at (513) 831-8778
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