Private equity firm Oaktree Capital Group LLC has tapped Goldman Sachs Group to find a buyer for packaging company Tekni-Plex, in a deal that could fetch around $800 million, sources told Reuters.
(Reuters) – Private equity firm Oaktree Capital Group LLC (OAK.N: Quote, Profile,Research, Stock Buzz) has tapped Goldman Sachs Group (GS.N: Quote, Profile, Research, Stock Buzz) to find a buyer for packaging company Tekni-Plex, in a deal that could fetch around $800 million, two people familiar with the matter said on Thursday.
The sale would come five years after Oaktree, in partnership with Avenue Capital Group, acquired a controlling stake in Tekni-Plex, which makes packaging and tubing materials for healthcare, food, beverage and other consumer products.
Founded in 1967, Tekni-Plex operates 24 manufacturing sites across North America, Europe, and Asia and makes products such as foam egg cartons, aerosol packages, dispensing pump components and medical tubing.
The company has around $100 million in earnings before interest, tax, depreciation and amortization and may fetch eight times that amount, the people added, asking not to be named because the matter is not public. Oaktree has yet to launch the sale process, they added.
Representatives of Oaktree and Goldman declined to comment.
Oaktree, the world’s largest distressed debt investor, took control of Tekni-Plex as part of the company’s balance sheet restructuring.
The investment firm, which had $78.8 billion in assets under management as of the end of March, invests in distressed debt, senior loans, high-yield bonds, private equity, convertible securities, real estate and listed equities.