Clearlake Capital-Backed Pretium Packaging Acquires Grupo Edid
17 December 2021
Pretium Packaging, L.L.C. a designer and manufacturer of packaging solutions for a diverse set of applications backed by Clearlake Capital Group, L.P. in partnership with management, today announced it has completed the acquisition of Ediplast SA de CV, Edipacks, SA de CV, Refrepet SA de CV, and Ediprint SA de CV , a family-owned rigid packaging manufacturer and paperboard printer serving diverse, recession resistant end markets including food and beverage, home care, healthcare and personal care. Financial terms of the transaction were not disclosed.
"We could not be more thrilled for Grupo Edid to join the Pretium team as part of our expansion into a rapidly growing market in Mexico," said Paul Kayser, President and CEO, and Julio Oropeza, VP Operations – Mexico Region, of Pretium. "Grupo Edid is recognized as a pioneer in the use of post-consumer recycled materials across its product lines, which aligned well with Pretium's core focus on sustainability and strategy to expand into Mexico. The Company has built a regional leadership in multi-use containers and closure systems with solutions that are highly complementary to Pretium's offerings. Additionally, Grupo Edid's thin-wall injection-molding and FSC-certified paperboard and micro-corrugated printed packaging divisions expand and enhance Pretium's capabilities. The quality and breadth of Grupo Edid's products, as well as scale of its operations, is a testament to the legacy the Edid family has built over the course of 35 years."
Headquartered in Lerma, Mexico, Grupo Edid provides sustainability-focused solutions with high-end, functional applications and serves over 300 customers across a diverse set of industries. The Company's products include blow and injection molded containers and closure systems, as well as high value printed micro-corrugated cardboard packaging Grupo Edid's leadership in sustainability is reflected in its distinction of "Empresa Socialmente Responsible," which is granted to companies and organizations from Mexico that meet a variety of stringent criteria that generally encompass economic, social, and environmental profitability and sustainability. Grupo Edid's entire leadership team is joining the Pretium team to help drive the new partnership through its next phase of growth.
"We are extremely excited to partner with Pretium, and we believe their culture and values align closely with the commitment to sustainability, innovation, and high-quality service that my family has worked hard to honor for all these years," added Isaac Edid, Chairman and CEO of Grupo Edid. "My family and I were only willing to sell Grupo Edid to the right partner who could continue executing on our vision for the business, and we believe we found the ideal partner in Pretium. We are excited to work with Paul Kayser and the Pretium team to not only continue, but meaningfully enhance our solutions to our customers, while also serving our employees and communities."
"In our pursuit to best service Pretium's customers across North America, we identified Grupo Edid as the ideal platform to expand Pretium's operations into Mexico given both companies' collective focus on delivering value-add, sustainable, and complete packaging solutions to our valued customers," said José E. Feliciano, Co-Founder and Managing Partner, and Arta Tabaee, Managing Director, of Clearlake. "We believe this strategic partnership will enable the combined platform to enhance Grupo Edid's customer solutions and production capabilities through Pretium's complementary products and technologies, while providing a strategic foothold for Pretium to best serve its existing customers with expanded operations in North America. We look forward to leveraging our O.P.S.® framework to ensure a smooth integration post-closing and continue driving accelerated growth for the platform."
The combination of Pretium and Grupo Edid represents the ninth acquisition for Pretium since 2014 and the second major acquisition this year, after having acquired Alpha Consolidated Holdings, Inc. in October. The transaction was financed with an add-on to Pretium's existing credit facility, led by Credit Suisse, the lead agent of Pretium's senior credit facilities.
Pretium specializes in innovation and automation of multiple rigid packaging technologies in a diverse set of end markets including food and specialty beverage, healthcare, health and wellness, personal care and beauty, and household and commercial products. The company's multi-use packaging solutions are based primarily on PET, HDPE, and polypropylene resin, with a wide array of options including up to 100% post-consumer recycled material content, making it a preferred choice for customers focused on sustainability. Pretium differentiates itself through responsiveness, breadth of product offerings, short changeover times, and a global footprint of 28 automated manufacturing facilities. More information is available at www.pretiumpkg.com.
About Grupo Edid
Grupo Edid is a leading Mexican manufacturer of plastic and printed packaging solutions. The Company's plastics division manufactures bottles, carafes, thin-wall containers, jars and closures made primarily from PET and HDPE. The Company's printing division manufactures value-add printed and micro-corrugated containerboard packaging solutions. Both divisions serve the home, personal care, and food and beverage markets with sustainable, value-added product and service requirements that demonstrate recession resistant demand characteristics. The company serves 300+ customers in diversified industries with its comprehensive packaging solutions. Grupo Edid's products are manufactured in two facilities in Mexico, strategically located to serve Mexico City, the country's largest primary packaging market. More information is available at www.grupoedid.com.
Founded in 2006, Clearlake Capital Group, L.P. is a leading investment firm operating integrated businesses across private equity, credit and other related strategies. With a sector-focused approach, the firm seeks to partner with experienced management teams by providing patient, long-term capital to dynamic businesses that can benefit from Clearlake's operational improvement approach, O.P.S.® The firm's core target sectors are industrials, technology and consumer. Clearlake currently has over $55 billion assets under management, and its senior investment principals have led or co-led over 300 investments. The firm has offices in Santa Monica and Dallas. More information is available at www.clearlake.com and on Twitter @ClearlakeCap.
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