Private equity firms Leonard Green & Partners, L.P. (LGP) and Oak Hill Capital, owners of Charter NEX, have completed a definitive agreement with Dave Frecka, CEO, founder and owner of Next Generation Films, Inc. to combine the companies. Dave Frecka will be a major shareholder in the combined company and will continue as CEO of Next Generation Films. Kathy Bolhous will continue as the CEO of Charter NEX Films. The transaction is expected to close by June.
“Charter NEX and Next Generation Films share a dedication to outstanding quality, excellent service and innovation,” said Kathy Bolhous, CEO of Charter NEX. “By blending our complementary assets, capabilities and expertise, we will create a powerful value proposition for our customers. With these two companies combining forces, there’s no limit to what we can do for our customers.”
Charter NEX and Next Generation Films both have strong brands and state-of-the-art assets. But they also have complementary products and focus on different market segments. The combination is expected to provide both companies and their customers with significant benefits including access to new markets, enhanced technical expertise, and an expanded manufacturing footprint. The combined company will have 11 manufacturing plants and more than 100 extrusion lines in Ohio, Wisconsin, South Carolina and Massachusetts.
Charter NEX and Next Generation Films plan to maintain their existing management teams and brand identities, operating as two distinct but synchronized divisions of the combined company.
“By joining these two market leaders together, we will be able to offer customers a broader scope of capabilities and product solutions, while leveraging our combined scale to offer the most technically-engineered specialty films,” said Dave Frecka, CEO, founder and owner of Next Generation Films.