Clearlake Capital Group is assessing a potential divestment of IPG in a deal that may exceed $3.5bn, reported Bloomberg citing sources.
The Santa Monica, California private equity group has engaged financial advisers to solicit bids for the business, as per the unnamed sources.
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Both strategic corporate suitors and private equity companies have expressed interest.
Deliberations have not concluded, and the firm may ultimately decide against a transaction.
Representatives for Clearlake and IPG declined to comment.
IPG, headquartered in Sarasota, Florida, operates more than 30 production and operational sites across the US and international markets.
The manufacturer produces protective packaging, packaging machinery, as well as paper and film-based tapes.
Clearlake acquired the business, then known as Intertape Polymer Group, in a 2022 take-private buyout valued at roughly $2.6bn.
That transaction paid common stock shareholders C$40.50 ($31.48) per share in cash, resulting in the company leaving the public markets to run as an unlisted entity.
Established in 2006 by José E. Feliciano and Behdad Eghbali, Clearlake oversees combined assets under management exceeding $185bn.
The firm’s portfolio extends to learning software provider Discovery Education and the UK’s Chelsea Football Club.
Notably, in October, Clearlake-backed IPG acquired Clysar, a manufacturer of premium polyolefin shrink film headquartered in Iowa.
Clearlake also owns Missouri-based Pretium Packaging, which it acquired in 2020.
Earlier this year, Pretium exited a pre-packaged Chapter 11 restructuring, cutting over $900m in debt while Clearlake invested $50m to remain its principal shareholder.
