Pamplona Capital Management has agreed to buy Charter NEX Films, a maker of polyethylene films. No financial terms were disclosed for the transaction, which is expected to close during the first quarter of 2015. Houlihan Lokey Capital advised Charter NEX on the deal while Morgan Stanley provided financial advice to Pamplona. Charter NEX was previously owned by Mason Wells.
LONDON and NEW YORK, December 29, 2014 /PRNewswire/ –Pamplona Capital Management, LLP (“Pamplona”), a global private equity investment firm, is pleased to announce that it has agreed to acquire Charter NEX Films, Inc. (“Charter NEX” or the “Company”). The completion of the transaction is subject to customary conditions, including expiration of the applicable waiting period under the Hart-Scott-Rodino Act. The transaction is expected to be completed during the first quarter of 2015.
Charter NEX Films is a leading independent producer of high performance polyethylene films. It holds a leading position within flexible food and consumer product packaging, and strong, growing positions in medical, pharmaceutical and industrial surface protection segments. The Company is benefiting from very strong growth in its key product categories, such as stand-up pouches, and is a valued partner for its diversified customer base as a result of its best in class quality standards and manufacturing performance.
Commenting on the transaction, Kathy Bolhous, Chief Executive Officer of Charter NEX, said: “We are delighted to be partnering with Pamplona. We have worked hard over a number of years to become an industry-leader in specialty film products. Since NEX’s 2012 merger with Charter Films, we have accelerated our growth through infrastructure and capacity investments to establish one of the industry’s leading growth platforms. We look forward to continuing this focus on providing our customers with the highest quality products and service and investing for the future under Pamplona’s ownership.”
Martin Schwab, the Partner at Pamplona leading the transaction, commented: “Charter NEX is a first-class business and we are delighted to be partnering with an exceptional management team who have grown the Company substantially over a number of years. We believe there are significant opportunities to continue this growth both organically and through acquisitions and we are excited to be part of the business. Pamplona will work with management to accelerate the Company’s growth ambitions by providing long-term financial and strategic support.”
This transaction follows Pamplona’s acquisition last month of a majority stake in Intralign Holdings LLC, a Scottsdale, Arizona-based healthcare company, and of Mobile, Alabama-based BBB Industries, a leading remanufacturer and distributor of automotive parts.
Pamplona is investing its fourth private equity fund, Pamplona Capital Partners IV LP, a USD 4 billion investment vehicle, raised earlier this year. Morgan Stanley & Co. LLC acted as financial advisor to Pamplona while Hogan Lovells US LLP acted as legal counsel.
Charter NEX was previously owned by private equity firm Mason Wells. Charter NEX was advised by Houlihan Lokey Capital, Inc. with Quarles & Brady LLP as legal counsel.
About Pamplona Capital Management
Pamplona Capital Management is a London and New York-based specialist investment manager established in 2005 that provides an alternative investment platform across private equity, fund of hedge funds and single manager hedge fund investments. Pamplona Capital Management, LLP manages over USD 10 billion in assets across a number of funds for a variety of clients including public pension funds, international wealth managers, multinational corporations, family offices and funds of hedge funds. Pamplona is currently investing its fourth private equity fund, Pamplona Capital Partners IV LP, which was raised in 2014. Pamplona invests long-term capital across the capital structure of its portfolio companies in both public and private market situations. Please see pamplonafunds.com for further information.
About Charter NEX
Charter NEX is a market-leading manufacturer of monolayer, coextruded and barrier films, including stand-up pouch and flexible packaging films. Charter NEX blown film products are used in a range of segments and high growth applications, with a particular focus on food and beverage, consumer product and medical applications. The Company has an industry-leading manufacturing capability, supported by a culture of operational excellence focused on training and development and continuous process improvement. Additional information is available at charternex.com.