New York private equity firm Wellspring Capital is buying packaging company Ampac Holdings LLC and will merge it with portfolio company Prolamina Corp. Alvarez & Marsal Capital Partners is also investing in the new combined company, which will be based in Cincinnati, Ohio. Financial terms were not disclosed.

Both Ampac and Prolamina make similar products such as bags, pouches and packages for the food and beverage, retail and health care sectors. Prolamina was formed in 2010 by Wellspring and industry veteran Harold Bevis.

“The acquisition of Ampac and its combination with Prolamina reflects the attractiveness of the global packaging industry,” says Wellspring principal Matthew Harrison. “We believe there is increasing growth potential in the sector given the shift towards flexible packaging solutions driven by shifting consumer demands.”

The Ampac acquisition follows other packaging deals in 2015 such as: Berry Plastic’s (NYSE: BERY) acquisition of Avintiv; Gerresheimer AG’s (FRA: GXI) deal for Centor US Holding Inc.; and Bubble Wrap owner Sealed Air Corp.’s (NYSE:SEE) purchase of B+ Equipment.

Pittsburgh packaging PPG Industries Inc. (NYSE: PPG) won Mergers & Acquisitions’ 2014 M&A Mid-Market Award for Strategic Buyer of the Year. Earlier this year, PPG picked up texture repair products maker Homax Group Inc. and paint distributor Masterwork Paint Co.

William Blair, Paul, Weiss, Rifkind, Wharton & Garrison LLP along with Jones Day are advising Wellspring. Lincoln International is Ampac’s financial adviser.

Manufacturing industry