PAI acquires plastics manufacturer

PAI partners, the private equity firm that manages the former BNP Paribas portfolio of direct investments, has reached agreement with US-based Crown Holdings to acquire its Global Plastic Closures Business for an enterprise value of approximately US$750m.

Headquartered in Paris, France, and Philadelphia, Pennsylvania, GPC is a leading designer and manufacturer of plastic closures for consumer packaging, primarily for the high-growth personal care, food, beverage, pharmaceutical and industrial end markets. The company reported net sales of US$676m in 2004 and employs 3,500 people worldwide.

Credit Suisse First Boston advised PAI on this transaction, which is subject to approval from the relevant anti-trust authorities. It is the intention of PAI to expand GPC’s business principally through significant investments in new product developments, but also through selective add-on acquisitions.

This year, PAI Partners has already closed the acquisition of the food ingredient activities of Denmark’s Chr Hansen, a chemical company, for the equivalent of €1.1bn. Other large transactions led by PAI have included the acquisition of Kwik-Fit Holdings, a UK owner and operator of auto parts stores and auto repair shops, from CVC Capital.