3 Apr 2013
Investcorp, a leading international alternative asset manager, today announced that it has completed a dividend recapitalization of Berlin Packaging, in partnership with Berlin’s founders and management team. Proceeds from the new $610 million credit facility will be used to refinance current debt and make a distribution to shareholders and existing management, who will continue to retain their existing equity stakes in the Company. Investcorp acquired a majority stake in the Chicago-based Company in 2007 and will remain the majority owner.
Berlin Packaging is the leading full-service Hybrid Packaging SupplierTM of plastic, glass, and metal containers and closures in North America. Berlin Packaging combines the best attributes of a manufacturer, a distributor, and a value-added service provider and works to improve the supply chain and create value for its customers. The Company serves over 5,000 core customers and revenues approaching $800 million, over 120 packaging consultants, and more than 90 sales offices and warehouse locations across North America.
Since 2007, the Company has doubled revenues and has been able to increase profitability each year despite the economic downturn. In addition to encouraging strong organic growth, Investcorp has also been supportive of Berlin’s desire to grow through the add-on acquisitions of All-Pak and Continental Packaging Solutions in 2010 as well as Lerman Container and United States Container Corporation in 2012, all of which strengthened the Company’s nationwide footprint and capabilities.
“Under Andrew Berlin’s leadership, Berlin Packaging is a prime example of a results-driven business that fosters a culture of success,” said James Baker, a Principal with Corporate Investment – North America & Europe at Investcorp. “The Company’s longstanding tradition of exceptional management and customer service along with its continued growth prospects solidified our mutual interest in remaining long-term partners.”
Andrew Berlin, Chairman and CEO of Berlin Packaging, said: “Through our partnership with Investcorp, we found an investor that has been, and continues to be, committed and eager to support our Company’s short and long term growth objectives. Although market conditions suggested scaling back during the downturn, we viewed it as an opportune time to invest meaningful resources into our sales operations – positioning us to better serve our customers and drive growth for our business. Looking ahead, we’re excited to continue our partnership with Investcorp to develop new and innovative ways to further accelerate Berlin Packaging.”
In addition to his role at Berlin Packaging, Mr. Berlin is a Limited Partner of the Chicago White Sox as well as Chairman and Owner of the South Bend Silver Hawks baseball team, which is a Class A affiliate of the Arizona Diamondbacks.
Bank of America Merrill Lynch and Deutsche Bank served as joint lead arrangers and ING acted as documentation agent.