US-based packaging services firm Berlin Packaging has entered a definitive recapitalisation agreement with private equity firm Oak Hill Capital Partners and Canada Pension Plan Investment Board (CPPIB) to facilitate the next stage of its growth.
As part of the agreement, the packaging firm will receive $500m investment from CPPIB.
Berlin Packaging chairman and CEO Andrew Berlin and his management team will also make an investment in the company.
Berlin said: “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 e-commerce capabilities.”
The deal is expected to close by the end of this year when Berlin and his management team will continue to lead the company.
Berlin Packaging offers a range of packaging solutions such as glass, plastic, as well as metal containers and closures to companies spread across various industries.
It also offers structural and brand design, worldwide sourcing, warehousing and logistics, and capital financing.
CPPIB managing director and direct private equity head Ryan Selwood said: “Berlin Packaging is a market leader with a resilient business model built to deliver economic value and brand differentiation for its customers.
“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.”