Pretium Packaging LLC announced today it has signed a definitive agreement to acquire Alpha Consolidated Holdings Inc., a supplier of sustainable packaging to health and wellness, specialty food and beverage, home and personal care, and other sectors. Pretium is backed by private equity firm Clearlake Capital Group, which signed the deal with Alpha investor Irving Place Capital. The financial terms of the transaction were not disclosed.
Pretium provides rigid packaging technologies to a diverse set of end markets including food and specialty beverage, healthcare, health and wellness, personal care and beauty, and household and commercial products. The company’s multi-use packaging solutions are based primarily on PET, high-density polyethylene, and polypropylene, with a wide array of options including up to 100% post-consumer recycled material content. Automation and sustainable practices are a particular focus across its 19 production facilities in the United States.
Alpha manufactures packers, bottles, and jars made primarily from PET and HDPE for health and wellness and personal care, as well as a variety of other markets. It operates 10 global facilities, two of which are in Europe.
The acquisition is a natural fit for Pretium, given both companies’ complementary product portfolios, process technologies, and footprints, said Pretium President and CEO Paul Kayser. “Both companies also share a focus on innovation, sustainability, and service to customers with small- to mid-sized production needs across recession-resistant end markets. We are excited to partner with a company that is aligned with our commitment to providing sustainable and complete packaging solutions for customers and will enhance our ability to capitalize on trends such as e-commerce growth and the increasing need for post-consumer recyclable solutions,” added Kayser in a prepared statement.
Clearlake also stressed the complementary qualities of the two companies as driving the acquisition. “We have supported Pretium’s sector-focused commercial approach, new product development, and automation initiatives since the beginning of our partnership, and the addition of Alpha expands our collective focus on value-add, short- and medium-run production of sustainable and multi-use packaging products,” said José E. Feliciano, co-founder and Managing Partner, and Arta Tabaee, Managing Director, of Clearlake. "This focus has and will continue to result in second derivative exposure to e-commerce, sustainability tailwinds, and emerging health and wellness, food and beverage, and home and personal care trends. Notably, Pretium has emphasized environmental, social, and governance initiatives as a core operating tenet, and Alpha has a similar mindset around these critical themes,” they added.
Terry Moody, President and CEO of Alpha, noted that the convergence of two players in rigid packaging with a focus on sustainability initiatives will benefit customers through the combined scale and investments made in such initiatives as automation, manufacturing optimization, and sustainability.