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Pamplona Capital Management to acquire Charter NEX Films

Private equity investment firm Pamplona Capital Management is to acquire Charter NEX Films, subject to customary conditions, including expiration of the waiting period under the Hart-Scott-Rodino Act. 

The transaction is expected to be completed during the first quarter of 2015.

Charter NEX Films is a leading independent producer of high performance polyethylene films. It holds a leading position within flexible food and consumer product packaging, and strong, growing positions in medical, pharmaceutical and industrial surface protection segments. The Company is benefiting from very strong growth in its key product categories, such as stand-up pouches, and is a valued partner for its diversified customer base as a result of its best in class quality standards and manufacturing performance.

Commenting on the transaction, Kathy Bolhous, Chief Executive Officer of Charter NEX, says: "We are delighted to be partnering with Pamplona. We have worked hard over a number of years to become an industry-leader in specialty film products. Since NEX's 2012 merger with Charter Films, we have accelerated our growth through infrastructure and capacity investments to establish one of the industry's leading growth platforms. We look forward to continuing this focus on providing our customers with the highest quality products and service and investing for the future under Pamplona's ownership."

Martin Schwab, the Partner at Pamplona leading the transaction, says: "Charter NEX is a first-class business and we are delighted to be partnering with an exceptional management team who have grown the Company substantially over a number of years. We believe there are significant opportunities to continue this growth both organically and through acquisitions and we are excited to be part of the business. Pamplona will work with management to accelerate the Company's growth ambitions by providing long-term financial and strategic support."

This transaction follows Pamplona's acquisition last month of a majority stake in Intralign Holdings LLC, a Scottsdale, Arizona-based healthcare company, and of Mobile, Alabama-based BBB Industries, a leading remanufacturer and distributor of automotive parts.

Pamplona is investing its fourth private equity fund, Pamplona Capital Partners IV LP, a USD4 billion investment vehicle, raised earlier this year. Morgan Stanley & Co LLC acted as financial advisor to Pamplona while Hogan Lovells US LLP acted as legal counsel.

Charter NEX was previously owned by private equity firm Mason Wells. Charter NEX was advised by Houlihan Lokey Capital, Inc. with Quarles & Brady LLP as legal counsel.

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