Specialty film producers Next Generation Films Inc. (Lexington, OH) and Charter NEX Films (Milton, WI) jointly announced a plan to combine their businesses and create a platform to lead the specialty films market.
Private equity firms Leonard Green & Partners L.P. and Oak Hill Capital, owners of Charter NEX, have completed a definitive agreement with Dave Frecka, CEO, founder and owner of Next Generation Films, to combine the companies. Frecka will be a major shareholder in the combined company and will continue as CEO of Next Generation Films. Kathy Bolhous will continue as CEO of Charter NEX Films.
Charter NEX and Next Generation Films plan to maintain their existing management teams and brand identities, operating as two distinct but synchronized divisions of the combined company. The transaction is expected to close by June.
“Charter NEX and Next Generation Films share a dedication to outstanding quality, excellent service and innovation,” said Bolhous. “By blending our complementary assets, capabilities and expertise, we will create a powerful value proposition for our customers. With these two companies combining forces, there’s no limit to what we can do for our customers.”
Charter NEX and Next Generation Films both have strong brands and state-of-the-art assets, but they also have complementary products while focusing on different market segments. The combination is expected to provide both companies and their customers with significant benefits including access to new markets, enhanced technical expertise and an expanded manufacturing footprint, said the joint release. The combined company will have 11 manufacturing plants and more than 100 extrusion lines in Ohio, Wisconsin, South Carolina and Massachusetts.
Charter NEX is an independent producer of high-performance specialty films used in flexible packaging, meeting customer needs in film from monolayer to multilayer, blown to cast, and breathable to barrier.
Next Generation Films, founded in 1994, supplies specialty films to a variety of markets, including the food packaging, automotive, manufactured housing and protective packaging segments.