Leonard Green & Partners to acquire ProMach from AEA Investors
By Canadian Packaging staffGeneral Acquisition of packaging equipment manufacturer AEA Investors LP Leonard Green & Partners L.P. ProMach Inc.
ProMach plans to continue its strong growth in the global packaging machinery marketplace.
CINCINNATI, Ohio—ProMach, Inc., a leader in packaging machinery solutions, announced on January 29, 2018 that affiliates of Leonard Green & Partners, L.P., a leading private equity investment firm, have entered into a definitive agreement to acquire the company from affiliates of AEA Investors LP. Financial terms of the transaction were not disclosed.
Founded in 1998, ProMach is a family of best-in-class packaging solution product brands serving manufacturers of all sizes, geographies, and industries. ProMach product brands operate across the entire packaging spectrum providing solutions for nearly every application, including integration and engineering services for complete integrated packaging lines.
“We are excited to be partnering with Leonard Green as we enter our next phase of growth,” says ProMach president and chief executive officer Mark Anderson. “The industry has changed dramatically over the past two decades, and so has ProMach. Through our strong partnership with AEA, and thanks to the hard work of every one of our dedicated employees, ProMach has become something truly remarkable. Our entire management team is looking forward to working with Leonard Green as we continue to build on our position as the premier provider of packaging line solutions across the globe. The team at Leonard Green has a strong reputation, understands our business, shares our vision, and most importantly shares our passion to fulfill our highest priority – serving our customers.”
ProMach’s portfolio of product brands includes Allpax, Axon, Benchmark, Brenton, Dekka, Edson, EPI, Federal, Greydon, ID Technology, KLEENLine, Matrix, NJM, Orion, Ossid, P.E. Labellers, Pace, Pacific, PackLab, Rennco, Roberts PolyPro, Shuttleworth, Texwrap, Wexxar Bel, WLS, Zalkin, and ZPI, along with the ProMach Performance Services line.
“ProMach has built an outstanding business model and has a proven track record of doing exactly what they say they’re going to do, through multiple ownership cycles,” says Leonard Green & Partners partner Chris McCollum. “Our investment philosophy is to partner with market-leading companies with multiple ways to grow, backed by best-in-class management teams. ProMach exemplifies this in a nearly unrivaled way in the packaging machinery space, making it an ideal fit. They are poised for continued strong growth and long-term success and we are very excited for this new partnership.”
Based in Los Angeles, Leonard Green & Partners is a leading private-equity investment firm with more than US$25 billion of assets currently under management. Since its founding in 1989, the firm has invested in over 90 companies primarily in the consumer services, business services, healthcare services, and retail sectors.
“We are extremely proud of the growth ProMach has achieved throughout our successful partnership,” says AEA Investors partner Tom Pryma. “At the onset with ProMach we mutually agreed on our long-term vision and goals for the business and their management team has delivered – meeting or exceeding every goal along the way. Together, we firmly established ProMach as a market leading, highly scalable, global packaging company with strong brand equity that is well positioned for success for years to come. We wish the ProMach team continued success under Leonard Green’s ownership.”
The transaction is expected to be completed in the first quarter of 2018 and is subject to customary closing conditions.
Pro Mach, Inc. is a family of best-in-class packaging solution brands serving manufacturers of all sizes and geographies in the food, beverage, pharmaceutical, personal care, and household and industrial goods industries. ProMach brands operate across the entire packaging spectrum: filling and capping, flexibles, pharma, product handling, labeling and coding, and end of line. ProMach also provides Performance Services, including integrated solutions, design/build, engineering services, and productivity software to optimize packaging line design and deliver maximum uptime.
ProMach designs, manufactures, integrates, and supports the most sophisticated and advanced packaging solutions in the global marketplace. Its diverse customer base, from Fortune 500 companies to smaller, privately held businesses worldwide, depends on reliable, flexible, technologically advanced equipment and integrated solutions. ProMach is headquartered near Cincinnati with manufacturing facilities and offices throughout North America, Europe, South America, and Asia. For more information about ProMach, visit www.ProMachBuilt.com.
About Leonard Green & Partners
Leonard Green & Partners, L.P. is a leading private equity investment firm founded in 1989 and based in Los Angeles. The firm partners with experienced management teams and often with founders to invest in market-leading companies. Since inception, LGP has invested in over 90 companies in the form of traditional buyouts, going-private transactions, recapitalizations, growth equity, and selective public equity and debt positions. The firm primarily focuses on companies providing services, including consumer, business, and healthcare services, as well as retail. For more information, visit www.LeonardGreen.com.
About AEA Investors
AEA Investors LP was founded in 1968 by the Rockefeller, Mellon, and Harriman family interests and S.G. Warburg & Co. as a private investment vehicle for a select group of industrial family offices with substantial assets. AEA’s active individual investors (the “Participants”) include an extraordinary network of more than 75 highly successful business executives, industrial families, and former government leaders. Today, AEA’s approximately 70 investment professionals operate globally with offices in New York, Connecticut, London, Munich, and Shanghai. The firm manages funds that have approximately US$10 billion of invested and committed capital, including the leveraged buyouts of middle market companies and small businesses and mezzanine and senior debt investing. AEA Private Equity invests across four sectors: value added industrial products, specialty chemicals, consumer products / retail and services. For further information about AEA, visit www.AEAInvestors.com.
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