The rising star of flexible packaging continues its upward trajectory with a new acquisition and merger that creates a global flexible packaging competitor with an “unparalleled” product portolio and broad geographical range in the industry.
New York-based private equity firm Wellspring Capital Management LLC, owner of Prolamina Corp., has acquired Ampac Holdings LLC and merged it with Prolamina. Wellspring did not share financial terms of the deal.
Matthew Harrison, a principal of Wellspring, says, “The acquisition of Ampac and its combination with Prolamina reflects the attractiveness of the global packaging industry. We believe there is increasing growth potential in the sector given the shift towards flexible packaging solutions driven by shifting consumer demands.”
Headquartered in Cincinnati, OH, the new company combines Prolamina’s three manufacturing sites in North America (Neenah, WI; Westfield, MA; and Terrebonne, Quebec, Canada) with Ampac’s 13 manufacturing plants in North America, Europe and Asia. Capabilities now encompass adhesive and extrusion laminations, rotogravure and flexographic printing, along with the combined innovative mindshare of more than 2,000 employees.
Prolamina CEO Greg Tucker will head the merged company as CEO. In the announcement press release, Tucker says, “I’m honored to lead a company with over 2,000 dedicated team members and 16 facilities worldwide with exceptional manufacturing scale to meet the growing needs of our valued customers.”
In addition to expansive capabilities and a global footprint, the company serves an impressive range of markets, including dry and liquid foods (such as frozen, coffee, dairy, pet and produce), foodservice, beverage, pharmaceutical, medical, industrial, chemical, lawn and garden, hardware, security and retail.
According to Mark Semer at communications advisor Kekst and Co., the company is developing its combined branding strategy and will announce a new name as part of that effort in the near future.
A winning hand in flexible packaging
Prolamina and Ampac both have a history rich in strategic acquisitions in the flexible packaging sector.
In August 2010, Packaging Solutions Holdings was created by private equity and CEO Harold Bevis when they acquired flexible packaging manufacturer Jen-Coat. Next the firm acquired flexible packaging manufacturer Excel Pac in March 2011. The company name was changed to Prolamina in May 2011 and it opened a new flexible packaging plant later that summer/fall. Packaging Dynamics was acquired in August 2011, adding more flexible packaging capacity along with paper-making through Packaging Dynamics Thilmany Papers business unit.
Ampac was established in 1966 and acquired by global private equity investment firm H.I.G. Capital LLC in 2014 in an all-cash transaction that valued the company at about $392 million.
Over the years, Ampac has made numerous acquisitions: Interstate Packaging Corp. (2000), International Paper’s Retail Bag Div. (2001), Tulsack Inc. (2002), Innovation Packaging Corp. (2003), Kapak Co. (finalized in 2005), Longview Fibre’s Retail Bag divisions (2004), Flexicon Inc. (2005), Sealed Air Corp.’s Trigon Security Packaging Div. (2007), Mohawk Northern Plastics Inc. (2007), Floeter Ireland Ltd. (2007) and ELAG Verpackungen AG (2011).