Private equity firm Oak Hill Capital Partners is set to acquire Berlin Packaging LLC, a supplier of packaging products and services in North America, for $1.43 billion.
The deal marks the latest exit for Investcorp, which purchased a majority stake in Chicago-based Berlin Packaging in 2007 for $410 million. Earlier this month, the Manama, Bahrain-based private equity firm sold SourceMedia Inc., the publisher of Mergers & Acquisitions, to Observer Capital.
The transaction also concludes an auction process that reportedly began in June when Investcorp had hired investment banks Barclays plc and Deutsche Bank AG to run a sale process.
Enter Oak Hill. The New York financial sponsor tapped Morgan Stanley as exclusive financial adviser on the deal and agreed to partner with Berlin Packaging’s current management team, led by CEO Andrew Berlin. The target’s various services include structural and brand design, warehousing and logistics, as well as capital financing.
The announcement comes less than three months after Oak Hill Private divested Jacobson Cos., a Des Moines, Iowa, packaging and warehousing company, to Norbert Dentressangle for $750 million.
The PE firm has more than $8 billion in committed capital, and has invested in more than 70 transactions. The firm focuses on consumer, retail, industrial, media and services deals. In May, Oak Hill sold a stake in the Hillman Companies Inc. to CCMP Capital Advisors LLC.
Other recent logistics, packaging and warehousing deals include: Bevcorp LLC's acquisition of Adcor Packaging Group LLC; Rotunda Capital Partners’ May purchase of a majority stake in warehousing and fulfillment services company Amware Logistics Services; and TriEnda Holdings LLC's April acquisition of shipping company Lexington Logistics LLC.
The deal is expected to close in the third quarter of 2014.
Law firms Gibson Dunn & Crutcher LLP and Paul, Weiss, Rifkind, Wharton & Garrison LLP served as legal counsel to Berlin Packaging and Oak Hill, respectively.
For more coverage on why M&A is percolating in the packaging sector, see "Lenders Show Love for Packaging."