Odyssey Investment’s Quiet Packaging Deal

Odyssey Investment Partners has quietly acquired Peninsula Packaging Company, two people familiar with the situation said.

The New York-based private equity firm won the company in an auction run by BMO Capital, paying upwards of 7x Ebitda for the company, the people said. Currently, BMO is helping the firm arrange a financing package which includes a $53 million senior debt facility. That would give Peninsula Packaging a 2.5x to 3.6x debt-to-Ebitda ratio.

Peninsula Packaging, based in Exeter Calif., and Wilson, N. C., manufactures polyethylene terephthalate (PETE) packaging for food products such as fruits, vegetables, bakery, confectionary, and deli items. The company has 150 employees, according to Hoover’s, and was founded by John Charles Buff. The sale to Odyssey is not Buff’s first exit to private equity. In 2000, Buff sold Associated Packaging Enterprises, Inc. to New York buyout firm Castle Harlan.

Odyssey Investment Partners has been an active acquirer in recent months, sealing a deal for Wencor Group, a Springville, Utah-based provider of PMA parts to the commercial aircraft sector, in February, and acquiring Safway, a provider of scaffolding services in the U.S. and Canada, in December. The firm also acquired One Call medical from TA Associates in December.

In March 2009, Odyssey closed its fifth fund with $1.5 billion in commitments, $500 million over its initial target. The firm’s prior vehicle had $750 million in capital.