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Castle Harlan acquires plastic packaging manufacturer for USD200m

Castle Harlan, a New York private equity investment firm, has completed the acquisition of Pretium Packaging, a manufacturer of custom-designed specialty plastic containers for the food, pharmaceutical, personal care and household markets.

In conjunction with the closing of the transaction, Pretium has acquired PVC Container, the parent of Novapak, which also makes specialty plastic containers.

The total transaction is valued at approximately USD200m.

Castle Harlan says the combined company, which carries the Pretium name, has annual sales of approximately USD240m and 14 manufacturing plants in the US and Canada serving more than 500 customers.

Pretium was sold by founder Keith Harbison, who retains a significant minority stake as a partner in the company and sits on its board of directors. Its management will continue to operate the company, along with certain members of Novapak’s management team.

Novapak, based in Eatontown, New Jersey, was sold by Kirtland Capital, a Cleveland-based private equity investment firm.

George Abd, Pretium’s president and chief executive officer, says: "This transaction combines world-class assets that enable us to give our customers, and the market in general, an unparalleled breadth of product offerings and innovative packaging designs with a strong and shared cultural focus on quality, service and value."

William Pruellage, the Castle Harlan senior managing director who led the acquisition, adds: "There is very little overlap in customers between the two companies, which enables Pretium to offer a broader range of products and services to existing customers. In addition, we see abundant opportunities for the combined company to expand its customer base geographically, and we believe management is energized to do that."

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