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February 2015Brown Gibbons Lang& CompanyPlastics & PackagingChicagoSpotlight:Healthy Diagnosis for Medical Plastics M&APage 4The medical plastics market is active with the pace ofconsolidation accelerating up and down the supply chain.Contract manufacturing organizations are looking to verticallyintegrate and become full-service suppliers to medical deviceOEMs. Plastics companies are expanding their medical productoffering and entering new markets.Competition for assets is high. Quality businesses arecommanding full valuation multiples due to the above-averagegrowth and margin profile and high barriers to entry of nichemarkets.One Magnificent Mile980 N. Michigan AvenueSuite 1880Chicago, IL 60611ClevelandOne Cleveland Center1375 East 9th StreetSuite 2500Cleveland, OH 44114bglco.comInsiderThe BGL Plastics & Packaging Insider is published by Brown Gibbons Lang & Company, a leading independent investment bankserving middle market companies throughout the U.S. and internationally.

Environmental Services InsiderHighlights:M&A and Capital Markets Activity 2014 was an active year for deal making—the confluence of pent updemand, low interest rates, and surplus capital. In the middle market1,transaction activity increased 22 percent over 2013 levels in both dealvolume and value. Thomson Reuters reported a sizable rebound in middle marketleveraged loan activity in 2014 with momentum expected to continueinto 2015. According to the 1Q15 Middle Market Outlook, new moneyissuance of 91.1 billion in 2014 was up 24 percent over 2013—thehighest level since 2007 ( 108 billion). Sponsored issuance volume grew26 percent to 17.6 billion in 4Q14. On higher budget goals in 2015, surveyed bank and non-bank lendershold a decidedly bullish view on M&A. Nearly 80 percent of respondentsexpect M&A will dominate loan activity in 1Q15. While 40 percent of surveyed lenders anticipate higher leverage levelsin 2015, almost 50 percent predict leverage will decrease. Robust liquidity fueled a frothy middle market lending environment in2014 with higher leverage pushing up valuation multiples to elevatedlevels. Reporting on the middle market (EBITDA of less than 50million), S&P Leveraged Commentary & Data cited a median EBITDAmultiple of 9.8x in 2014—up from 8.8x in 2013. Senior debt multiples roseto 5.2x—up from 4.5x in 2013. M&A activity in plastics and packaging is accelerating, indicative ofbroad investor appetite across diverse end markets. Private equityemerged as the buyer on several recent headline deals, includingnotable platform transactions in packaging: Berlin Packaging (Oak HillCapital Partners), Mauser (Clayton Dubilier & Rice), Pretium Packaging(Genstar Capital), Pregis (Olympus Partners), PPC Industries (Kohlberg& Company), and the pharmaceutical devices and prescription retailpackaging operations of Rexam plc’s Healthcare Division (MontaguPrivate Equity). Acquisitive NOVOLEX (Wind Point Partners) acquiredPackaging Dynamics Corporation and Duro Bag Manufacturing,and Coveris (Sun Capital Partners) completed add-on acquisitionsLearoyd Packaging, St. Neots Packaging, and Closures. In EngineeredComponents, Golden Gate Capital acquired Phillips-Medisize. Notable middle market corporate buys include Avalon Laboratories byNordson Corporation (NasdaqGS:NDSN), Scepter Corporation by MyersIndustries (NYSE:MYE), Dura-Line by Mexichem (BMV:MEXCHEM*),NDS by NORMA Group (DB:NOEJ), and Vaupell by Sumitomo Bakelite(TSE:4203).1Middle market defined as enterprise values between 25 million and 500 million.

Public Equity Markets 2015 is off to a volatile start with falling oil prices and global economicweakness weighing on investor confidence. Year-over-year, the S&P500 and DJIA are up 15 percent and 12 percent, respectively. BGLPlastics & Packaging composite indices have outperformed the broadermarket, with Flexible Packaging up 35 percent, Paper and Board up 32percent, and Plastic Products up 16 percent over the same period.*As of February 20, 2015.Operating Highlights The U.S. economy remains a bright spot in a lackluster global economy.While growth slowed in December, the U.S. manufacturing sectormarked its 19th consecutive month of expansion. The Institute forSupply Management projects higher growth for the U.S. manufacturingsector in 2015. In line with the expanding manufacturing economy, the plastics industryis demonstrating strong growth. Reporting on data compiled fromthe Federal Reserve industrial index of plastic products, MountaintopEconomics & Research cited growth of 6.1 percent in 2013 and forecastsan increase of 6.3 percent in 2014. The market research firm expectsmomentum to carry over into 2015, projecting overall industry growthof 5 percent in 2015. Major plastics end markets are seeing continued stable demandthat is largely broad-based, with construction and building productsexperiencing a visible uptick in a strengthening recovery. Plasticsprocessors are particularly bullish on healthcare as outsourcing trendsare expected to sustain future demand for services.For more information on howBGL’s Global Plastics & PackagingPractice can assist your company,please contact:Andrew K. PetrykKevin H. SargentManaging Director & PrincipalHead: Industrials and Plastics & [email protected] & [email protected] Results to the Global Middle Market

Inside thePlastics& PackagingMiddle MarketInsiderSpotlight On:Medical PlasticsThe medical plastics market is active with M&A activity expected to remain high. Market participants are investing inexpansion with acquisitions in focus to accelerate growth. The industry continues to attract private equity interestwith investors looking to build growth platforms, a function of strong secular trends and high barriers to entry in afragmented market.Healthcare reform is accelerating consolidation across thesupply chain. Growing regulatory complexity and increasingcost pressures are leading medical device manufacturersto trim their supplier base and fast-track outsourcing ofcomponent manufacturing and assembly in order to focus oncore product development activities. Contract manufacturingorganizations are looking to vertically integrate and becomemore important suppliers to medical device OEMs, andplastics companies are looking to expand their medicalproduct offering and enter new markets.Market conditions are favorable for prospective sellersseeking exits. Strategic and financial buyer appetite ishigh. Access to capital is plentiful, and private equityfunds are under pressure to deploy capital. Medicalplastics businesses are attracting high valuation multiplesdue to the above-average growth and margin profile,product and development complexity, and high barriersto entry of niche markets.Demand for medical products is growing. A burgeoningelderly population will be in need of specialized medicalcare, while the U.S. healthcare system will see the numberof healthcare consumers balloon by the millions under theAffordable Care Act. Demand for medical devices for useat home and single-use is growing, said Harold Faig, CEOof MedPlast, in a June 2014 interview with Plastics News.Diabetes, personalized diagnostics consumables, and singleuse devices represent high-growth markets. Pharmaceuticalpackaging is seeing increased demand for customizedsolutions with regulation, an aging population, developinghealthcare markets in emerging regions, expanding genericsmarket, and convenience packaging among the drivers offuture growth.Engineered ComponentsMarket participants are seeking technology and capabilityexpansion through a combination of acquisition and organicgrowth, with several recent announcements of strategic buysand facility and clean room expansions to build scale andadvance competitive position.Geographic footprint remains in focus as suppliers look toglobal expansion to stay close to customers and capitalizeon growth in emerging markets. In addition to establishinga local manufacturing presence, increasingly customers aredemanding suppliers be more responsive for design andengineering.Selected investment activity medical plastics:In January 2015,Ernie GreenIndustries (EGI)announced the formation of EG GILERO, a verticallyintegrated platform that merges four companies, GILEROBiomedical, InField Medical, and the medical businessesof eNNOVEA and ValTech Holdings, which together willserve as a single-source partner for design, development,and manufacturing to the medical device, drug delivery,and primary pharmaceutical packaging markets. EGGILERO’s full-service capabilities include design, tooling,testing, regulatory, manufacturing, assembly, packaging,and distribution/logistics. The company has operations inthe United States and Asia.“Over the past year, market research was conductedwith current and potential customers to uncover industryexpectations and unmet needs,” said John Walter,Director of Business Development at eNNOVEA. “Theoutcome of the research was instrumental in EGI’s goal tocreate the broad design-to-distribution service offering ofEG GILERO.” “Being able to leverage tooling, full contractmanufacturing, and supply chain management capabilitieswith GILERO’s design, development, and regulatorycapabilities was the next logical step to efficiently supportour customers,” said Ted Mosler, President & CTO atSOURCE: S&P Capital IQ, PitchBook, Plastics News, Equity Research; Company Filings, and public data.4

Plastics & Packaging InsiderInside the Middle MarketGILERO Biomedical. “This unique strategic consolidationof capabilities and expertise will provide customers a newlevel of service,” said Jim Gaffney, President of ValTechHoldings.In January 2014, Qure Medical acquired TompkinsPharmaceutical Rubber to expand its pharmaceuticalproduct offering. In May 2014, Qure opened its firstmanufacturing facility in Dong Guan, China, establishing alocal manufacturing presence in the region.In December 2014, 3i Group plcacquired Q Holding Co. from IndustrialGrowth Partners (IGP) in a 160 milliontransaction. Q Holding manufacturesprecision molded rubber and silicone components underthree operating businesses—Qure Medical, QSR, andQuadra Tooling and Automation. Qure Medical produceselastomeric products, including catheters and syringeplungers, for the medical and pharmaceutical industries.QSR produces rubber components such as connectorseals and ignition insulators for the automotive, industrial,and aerospace markets. The company employs more than1,000 people from six manufacturing facilities in the U.S.and China and a sales and engineering office in Germany.IGP acquired Q Holding in July 2012.In October 2014, VentionMedical announced theexpansion of its CatheterCenter of Excellence in Minneapolis, doubling its footprintin the manufacturing of precision catheter components.“Our new site is a ‘one-stop shop,’” said Tom Testa,president of Vention’s Advanced Components business.“This world-class facility will provide our customersanother Vention option to partner with for their catheterprojects from start to finish. This expanded serviceoffering in Minneapolis will help local customers save costsand increase speed to market.”Vention Medical is the growth platform of KRG CapitalPartners, formed in May 2008 to serve as a contractmanufacturer of complex, plastics-based medicaldevices serving OEMs in the interventional and handheldsurgical device end markets. Through a series of addon acquisitions, the company has expanded its globalfootprint and developed a leadership position in complexmedical balloon blowing and heat shrink tubing:Richard Relyea, a partner at 3i North America, indicatedthat selective acquisitions in Europe and North Americawithin the fragmented silicone molding sector wouldbenefit Q Holding, adding that 3i is looking forward toworking with Q Holding’s management team “to buildupon this strong platform for growth, in particularleveraging our local presence and network to helpaccelerate the company’s continued internationalexpansion.” Fast Forward Medical (October 2013 acquisition), amanufacturer of complex braided catheter shafts andcatheter technologies for minimally invasive medicaldevices.Healthcare Outsourcing MarketOutsourcing RevenueOutsourcing by Process( in billions) 140ComponentmanufacturingSteriliza onR 13.5%Finished DeviceOutsourcing 120Electronics Outsourcing 100Final assembly 80Packaging andwarehousing 60Design engineeringCAGPlas c Injec on MoldingPlas cs Extrusions 40Metal Fabrica on &Molding Outsourcing 20Other Material andMechanical Outsourcing 02011Source: Plas cs Today.20132016*Category estimates.Source: Jabil Circuit.SOURCE: S&P Capital IQ, PitchBook, Plastics News, Equity Research; Company Filings, and public data.5

Inside thePlastics& PackagingMiddle MarketInsiderSpotlight On:Medical Plastics RiverTech Medical LLC (July 2013 acquisition), amanufacturer of polyimide tubing, braided polyimide,composite tubing, and wire coatings, strengtheningVention’s capabilities in balloon catheters, catheterassemblies, and other minimally invasive medicaldevices. Ansamed Ltd. (August 2011 acquisition), amanufacturer of medical tubing solutions and catheterdesign and manufacturing. Established a strategicpresence in Ireland to serve as a base for furtherEuropean and international expansion.Flextronics International(NASDAQ: FLEX) isactively building its medical mold making capabilities,according to Plastics News, which reported in October2014 subsidiary Lynx Medpak acquired molding assetsfrom Berry Plastics Group which employs advanced“mega cell” technology. The transaction is its secondpurchase of a medical molder following the acquisitionof Tempe, Arizona-based Tech Mold in November 2013.Plastics News sources cited additional assets acquired inthe U.S. Northeast and Europe, which further Flextronics’effort to expand its high-end tooling capabilities insupport of growing its medical business.In August 2013, Flextronics acquired Switzerlandbased precision injection molder RIWISA AG in a moveto expand its medical capabilities. “The addition ofRIWISA’s precision plastics and automation capabilitiesto Flextronics Medical is a tremendous complement tothe broad range of healthcare solutions we can offerour customers globally and underscores the strategiccommitment we have made to expand our services in thismarket,” said Mark Kemp, President of Flextronics Medical.RIWISA will establish a European Center of Excellence forprecision plastics in Switzerland, indicated Kemp. RIWISAserves customers in the medical, consumer packaging,and industrial products markets.In August 2014, NordsonCorporation (NasdaqGS:NDSN)acquired Avalon LaboratoriesHolding Corp., a manufacturer ofsingle-use catheters and specialtymedical tubing products for cardiology, pulmonology,and related applications, in a 180 million transaction.The company will become part of Nordson’s AdvancedTechnology Systems segment. The company operatesmanufacturing facilities at its headquarters in Los Angeles,California, and a plant in Guaymas, Mexico. Commentingon the acquisition, Nordson CEO Michael Hilton said thatAvalon “brings Nordson another stream of high valuerecurring revenue and further reduces our exposure tomore cyclical end markets.” The company has achieveddouble-digit annual revenue and EBITDA growthsince 2008, Hilton reported, “ through a combinationof innovative products, unique intellectual property,process know-how, strong customer relationships, andscalable low cost manufacturing.” The new business willcomplement Nordson’s existing offering of single-usemedical plastic components acquired with Value Plasticsin September 2011. Nordson paid a full price of 9x revenueand 17x EBITDA for Value Plastics, which generated 55percent EBITDA margins.In June 2014, Sumitomo Bakelite Co. Ltd. (TSE:4203)acquired Vaupell, Inc. from H.I.G. Capital in a 265million transaction. Vaupell is a value-added supplierof thermoplastic and composite solutions to theaerospace industry as well as niche commercial andmedical applications. The company produces engineeredcomponents that are used in medical devices andimplants incorporating bioabsorbable materials. Medicaldevice manufacturers such as Stryker, Cooper Surgical,Smith & Nephew, and Bard are customers. Vaupellalso supplies molding products and assemblies to theaerospace industry, specializing in aircraft interiors. Thecompany is a Tier 1 supplier to Boeing, Airbus, Goodrich,Spirit, and Vought, among others.SOURCE: S&P Capital IQ, PitchBook, Plastics News, Equity Research; Company Filings, and public data.6

Plastics & Packaging InsiderInside the Middle MarketH.I.G. Capital acquired Vaupell in 1998. Vaupell acquiredSciTech Plastics Group in May 2004, extending itscapabilities into the medical market. The companycompleted a second acquisition in June 2011, RussellPlastics Technology, to expand its reach in the defensemarket.“H.I.G. has been a tremendous partner to Vaupell and hasbeen instrumental in helping us establish and executeour growth strategy,” said Vaupell CEO Joe Jahn. “Overthe past 16 years, we’ve made two sizeable acquisitions,expanded our product line and capabilities, investedin new technologies, and made sizeable strategicinvestments to support our customers by opening newfacilities in Everett, Washington and Shenzhen, China.At the same time we are excited at the prospects ofpartnering with a global manufacturer of products alignedwith our market segments. We believe this acquisitionprovides substantial opportunity for growth for all ourstakeholders.”In a company statement, Sumitomo Bakelite referencedVaupell as a “highly strategic acquisition” that will enablethe company “ to fully enter the aerospace interiors fieldwhile fulfilling a long-sought desire to deploy its medicalequipment business internationally.” Shigeru Hayashi,President of Sumitomo Bakelite Co., Ltd. commented,“In the medical equipment business, the transaction willenable Sumitomo Bakelite to obtain Vaupell’s technology,leverage Vaupell’s customer network to leading globalmedical companies, access the advanced medical trendsin the United States, cultivate new customers in Japan andthe United States, and expand existing medical operationsthrough Vaupell’s current sales channels.”Phillips-Medisize announced inMay 2014 it was changing privateequity hands with the sale byKohlberg & Company to GoldenGate Capital. The estimated 800 million purchase price values the company at 1.3xrevenue and 10x EBITDA, reported PitchBook. Healthcareaccounts for about 80 percent of the business, withapplications in drug delivery, medical device, primarypharmaceutical packaging, and diagnostic products suchas disposable insulin pens, glucose meters, specialtyinhalation drug delivery devices, single-use surgicaldevices, and consumable diagnostic components. PhillipsMedisize reported revenues of 600 million at the time ofthe acquisition. The company employs over 3,100 peoplein 19 locations throughout the United States, Europe,Mexico, and China, and has design centers in Wisconsin,California, and the Netherlands.Kohlberg & Company was an early investor in PhillipsPlastics and under its ownership completed the August2011 acquisition of Finland-based Medisize Corporation,doubling the company in size ( 500 million in revenue atacquisition) and gaining an entry to the European medicalplastics market. In August 2013, Phillips-Medisize acquiredthe Suzhou, China and Queretaro, Mexico medicalinjection molding operations of Adval Tech Group, whichfocus on finished drug delivery systems and relatedmedical devices.“Phillips-Medisize represents a terrific opportunity toinvest in a strong design and manufacturing serviceplatform with global scale and a proven track recordof delivering an exceptionally broad and deep setof capabilities to its customers,” said Rajeev Amara,Managing Director at Golden Gate Capital. “The companyis well-positioned to grow and succeed in the rapidlyexpanding medical outsourcing market, and Golden GateCapital is committed to investing in the company tosupport the next phase of its growth.”2014 was a milestone year for Phillips-Medisize, markingits 50th year in operation. In November 2014, the companyannounced it was undertaking a 30 million expansionat five facilities throughout Wisconsin. Phillips-Medisizerecently completed a 60,000 square feet expansion to itsKontiolahti, Finland site in December 2013.SOURCE: S&P Capital IQ, PitchBook, Plastics News, Equity Research; Company Filings, and public data.7

Inside thePlastics& PackagingMiddle MarketInsiderSpotlight On:Medical PlasticsIn October 2013, MedPlastacquired UK-basedOrthoplastics, a leadingcustom manufacturer of ultra-high molecular weightpolyethylene products and components for global OEMsserving the orthopedic device implant market. The moveexpands MedPlast’s global footprint with orthopedicdevice OEMs and further grows its injection moldedplastics business within medical devices. “Through thisacquisition, MedPlast can accelerate its growth into themedical device assembly and implantables markets,” saidMedPlast CEO Harold Faig in a press release announcingthe transaction. “Orthoplastics gains production capacityfor components, while MedPlast is able to expand itsfootprint in Europe for medical applications.” “Drivenby an increasingly aging population and healthcarelegislation, MedPlast’s robust product line addresses theneed for effective orthopedic solutions in both developedand developing countries,” said Faig.Baird Capital Partners and River Cities Capital Fundsare investors in MedPlast, which formed the company in2008 with the merger of Applied Tech Product Corp.’sEngineered Rubber and Plastics Group and K&WMedical Specialties. In April 2012, the sponsors completedthe add-on of contract manufacturer United PlasticsGroup, gaining entry to China and Mexico, boosting itsgrowing medical business.“MedPlast has the broadest capability serving the largestsegment of the health care market,” Faig told attendeesat the Plastics in Medical Devices conference in May2014. The company’s diverse processing capabilitiesinclude injection molding, medical blow molding, siliconeextrusion, compression and transfer molding, liquidinjection molding (LIM), two-shot molding, over molding,insert molding, multi-component molding, and precisionmold making. MedPlast operates 13 facilities in the UnitedStates, Mexico, China, and Europe serving 10 differentmarket segments that include diagnostic products,surgical aspirators, shunts, orthopedic implants, andcardiovascular syringes. Faig indicated that MedPlast isexpanding capabilities in blow, fill, and seal technologyand exploring 3-D printing. “We’re very, very bullish onthe medical markets,” Faig said.Jabil Circuit’s (NYSE:JBL) 665 million acquisitionof Nypro in July 2013 was one of the most notable inmedical plastics, a move that Timothy Main, Chairman ofJabil Circuit said, “ continues our strategic plan to growDiversified Manufacturing Services aggressively,” in aFebruary 2013 analyst call to discuss the acquisition. Mainidentified “the very long product life cycles in healthcareand packaging, the very significant engineering andinnovation content in the businesses, and very intenseengineering relationship with customers and a greatlevel of design and collaborative design in the products”as key merits of the acquisition. Healthcare representsapproximately 45 percent of Nypro’s 1.2 billion inrevenue.Main identified consumables and disposables as thefastest growing and largest segment of the medicaldevice market, emphasizing the attractiveness of therecurring revenue stream and profitability generated fromthe business. The Nypro acquisition significantly expandsJabil’s addressable market, which it sizes at 65 billion forhealthcare consumables and disposables and 140 billionfor rigid plastics packaging, a market it characterizes ashighly fragmented.Nypro has been growing since Jabil’s acquisition, saidsenior vice president of Jabil Circuit and CEO of NyproCourtney Ryan. Post-acquisition, Jabil formed NyproHealthcare, bringing together Nypro with Jabil Healthcare& Instrumentation and adding two Jabil facilities,growing revenue from 1.1 billion to about 2.0 billion.The combined company employs 8,000 people from 23locations in 11 countries.In September 2014, Nypro announced a new 200,000square foot medical device manufacturing facility inClinton, Massachusetts, adding to its existing 800,000square feet of manufacturing space. The new facilityhouses Class 8 clean room molding and assembly areas,a metrology lab, and machine shop. The investmentexpands its Massachusetts clean room space by 60percent. The expansive facility has room to grow, withSOURCE: S&P Capital IQ, PitchBook, Plastics News, Equity Research; Company Filings, and public data.8

Plastics & Packaging InsiderInside the Middle Market60,000 square feet of injection molding space that canaccommodate as many as 60 machines—up from fourmachines at the start of production which was scheduledfor the fourth quarter of 2014.Nypro has also made significant investments in facilitiesin Ireland, Mexico, and emerging regions like China,where a growing middle class is supporting a developinghealthcare market.UK-based injection molder Carcloplc (LSE:CAR) is expanding itsChinese medical manufacturing capacity with a newfactory in the Taicang, Jiangsu Province and additionalcleanroom capability to support the manufacturing ofcomponents for diagnostic devices, reported PlasticsNews. “The new facility is significantly larger than ourexisting one and will provide cleanroom manufacturingcapacity to support the long term expansion of themedical business into China,” the company said. “Chinahas become the fastest growing consumer market formedical devices,” the company said, citing a 16 percentannual growth rate in the company’s September analystpresentation.Medical plastics contributes about 60 percent to therevenue of Carclo’s Technical Plastics Division, mainlyfrom medical devices. Revenue and operating profitfor the Division increased 7 percent and 31 percent,respectively, in H1 14. Carclo operates facilities in the UK,the United States, the Czech Republic, China, and India.PackagingIn January 2015,Inteplast Group Ltd.announced the formation of Inteplast Healthcare, a newstrategic business unit focused on the medical market.The unit integrates the assets of several subsidiaries thatprovide medical disposables, a move that is expectedto leverage sourcing and procurement synergies andattract customers, reported Plastics News. In a companystatement, Inteplast Group said the new unit will offer“the broadest selection of patient bedside plastics,measurement and collection, and waste containmentproducts in the marketplace.”Inteplast Healthcare assets include Medegen MedicalProducts, acquired from Medical Action Industries inJune 2014, which produces injection molded andthermoformed plastic patient bedside items such asurinals, pitchers, emesis basins, and bedpans, in additionto sharps containers and graduated measures; Minigripzipper and specialty medical bags; and IntegratedBagging Systems division and Interplast/Pitt Plastics,which together produce a range of bags, including canliners and laundry bags.Charles Kelly, President of Medegen Medical Products,is leading initiatives at Inteplast Healthcare. “Inteplast’srenowned manufacturing strength, focus on capitalinvestment, and long-term vision for Inteplast Healthcareis exciting,” said Kelly. “We are developing new products,adding to our existing product line, and look forwardto offering broader private label manufacturing as well.This is the beginning of a significant organization thatwill become increasingly beneficial and relevant to themarketplace.”In December 2014,Wendel agreedto acquire CSPTechnologies in a transaction valued at 360 million.CSP is a leading supplier of desiccant plastic vials for thediabetes test strip market. Wendel highlighted CSP’s longterm growth potential as diabetes testing continues tobecome more accessible, particularly in emerging markets.The company also provides innovative high-performanceplastic packaging solutions to diverse end markets thatinclude consumer health, food, dairy, and retail. CSP wasfounded in 1928 and is headquartered in Auburn, Alabama.The company employs approximately 400 people fromfacilities in Auburn and Niederbronn (Alsace, France).CSP was projected to generate revenue of over 100million and free cash flow (adjusted EBITDA less capex) ofapproximately 26 million in 2014.SOURCE: S&P Capital IQ, PitchBook, Plastics News, Equity Research; Company Filings, and public data.9

Inside thePlastics& PackagingMiddle MarketInsiderSpotlight On:Kohlberg & Companyacquired PPC Industries,a maker of engineeredconsumable specialtyplastic packaging, from AEAInvestors in December 2014. PPC supplies an extensiveportfolio of customized tubing, films, and bags to themedical device market under the Kelpac brand, as wellas specialty food and industrial films/bags, auto-insertionbags (AIB), and protective systems bags under the PPCbrand. The company’s manufacturing footprint includesseven facilities in North America, Central America, Europe,and Asia.Kohlberg’s financial backing and investment experiencein packaging and medical devices will accelerate PPC’sgrowth and development, which will be achieved“organically and via acquisition,” said Seth Hollander,a partner at Kohlberg. “Kohlberg was attracted to thecompany’s high quality product offering and deepcustomer partnerships, supported by its robust newproduct development pipeline and state-of-the-artmanufacturing capabilities. PPC maintains leading marketshare positions in its end markets, including top marketshares in medical tubing, AIB, and protective systemsbags,” according to a press release announcing thetransaction.PPC was a portfolio company of AEA Investors sinceMarch

Feb 25, 2015 · Healthcare Outsourcing Market Outsourcing by Process Source: Plascs Today. Component manufacturing Sterilizaon Final assembly Packaging and warehousing Design engineering 0 20 40 60 80 100 120 140 2011 2013 2016 Finished Device Outsourcing Electronics Outsourcing Plasc Injecon Mo