Eastern acquires packaging solutions firm Big 3 Precision

5 September 2019 (Last Updated September 5th, 2019 09:55)

US-based custom-engineered product manufacturer The Eastern Company has acquired packaging provider Big 3 Precision from TVV Capital in a deal valued at $81.7m.

US-based custom-engineered product manufacturer The Eastern Company has acquired packaging provider Big 3 Precision from TVV Capital in a $81.7m deal.

Big 3 Precision offers turnkey packaging solutions through two business segments, Big 3 Precision Products and Big 3 Precision Mold Services.

The company serves various markets, including truck, automotive, plastic packaging products, packaged consumer goods, and pharmaceuticals.

Big 3 Precision Products designs and manufactures custom-returnable packaging solutions, which can be integrated with assembly processes, while Big 3 Precision Mold Services produces blow mould tools.

Eastern president and CEO August Vlak said: “This transaction, our third acquisition in three years, represents another step toward our ambition of building a larger company that has a strong presence with key customers and in key markets.

“Consistent with our disciplined approach, this transaction checks the boxes of our stated acquisition criteria: strong intrinsic economics, including an attractive margin profile and high cash flow generation; a robust business model in attractive niche markets we understand; and a committed and capable management team.”

Eastern funded the transaction by refinancing its existing credit agreement with a new $100m term loan and $20m revolving credit facility.

Vlak further added: “Going forward, to create value from this investment, we intend to execute a multi-pronged plan that leverages Eastern’s management disciplines and operating approach, takes advantage of Eastern’s customer relationships to accelerate further market expansion and expedites growth through bolt-on acquisitions.”

Eastern currently operates in 18 locations in the US, Canada, Mexico, the UK, Taiwan, and China. The company produces custom-engineered components and products such as industrial hardware, security products, and metal castings.