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Oak Hill Capital Partners ("Oak Hill") and Canada Pension Plan Investment Board ("CPPIB") have entered into a definitive recapitalization agreement with Berlin Packaging L.L.C. ("the Company") to facilitate the next stage of its growth.
As part of the arrangement, CPPIB will make a US$500 million investment in the Company. The Berlin Packaging management team, including Chairman and CEO Andrew Berlin, will also make a significant investment. Additional financial terms were not disclosed. The transaction is expected to close by the end of 2018.
Berlin Packaging is a supplier of packaging products and services to companies in multiple industries, providing customers of all sizes with a one-stop shop for glass, plastic, and metal containers and closures. The Company's broad offering of services includes structural and brand design, worldwide sourcing, warehousing and logistics, and capital financing. With US$1.4 billion in annual sales, Berlin Packaging has been a leader in the packaging materials business for over 100 years and has achieved an unparalleled track record of 99% on-time delivery, quantified profit-boosting results for customers, and industry-leading customer thrill. The management team, led by CEO Andrew Berlin, will continue to lead the Company.
"The Berlin Packaging team is excited to deepen our relationship with valued strategic partners, Oak Hill and CPPIB. This transaction allows us to take our business to an even higher level as we pursue multiple strategic initiatives, including acquisitions in North America and Europe, additions to our sales and service teams, and more investment in our ecommerce capabilities," said Andrew Berlin.
Brian Cherry, a Partner at Oak Hill, added, "Berlin Packaging continues to be a best-in-class business with a history of sustained outperformance and a sizeable growth opportunity ahead. We look forward to continuing our partnership with Andrew and his management team, as well as working alongside CPPIB, to maximize long-term value creation."
"Berlin Packaging is a market leader with a resilient business model built to deliver economic value and brand differentiation for its customers," said Ryan Selwood, Managing Director, Head of Direct Private Equity, CPPIB. "Alongside our equity partner, Oak Hill, we look forward to supporting further growth and innovation by this industry-leading company that Andrew Berlin and his team have created, as Berlin Packaging continues to expand its value proposition to customers, suppliers and employees."