NEWSBack to News
Packaging Solutions Holdings Acquires Excel Pac
Innovative, High-End Flexible Packaging Supplier to Food & Dairy Industry
to Join New Packaging Company
March 1, 2011
MONTREAL, CANADA--Wellspring Capital Management and Harold Bevis, Chairman and Chief Executive Officer of Packaging Solutions Holdings, announced that Packaging Solutions Holdings has acquired Excel Pac, a leading flexible packaging manufacturer in the food, dairy and pet food markets from Vincent Musacchio. The team, assets and know-how of Excel Pac join Jen-Coat and a new greenfield plant and team in Wisconsin to form a Top 20 packaging supplier to the food, dairy and medical markets. Financial terms of the transaction were not disclosed.
Packaging Solutions Holdings now will have the manufacturing footprint and personnel to serve the industry from three plant locations in Canada and the United States with an asset base of 10 laminators and 11 printing presses. Additionally, the R&D team of the new larger entity now has over 20 people developing next generation packaging solutions.
Based in Montreal, Canada, Excel Pac's packaging solutions are used in demanding applications for a wide range of products including cheese, yogurt, pet food, confectionary, bakery, frozen pizza, meat, barrier and modified atmosphere packaging. The products are delivered in rollstock form, premade pouches with press to close zippers, premade pouches with slider zippers, and side-gusseted flat bottom pouches with slider zippers.
Excel Pac is an award winning flexible packaging manufacturer recognized for its ability to print complex and high-end graphics and is renowned for its customer responsiveness, fast turnarounds and on-time delivery. A leader in solventless adhesive laminating, 10 color printing and pouch making, the company's facilities are compliant with AIB standards of the food industry and are peanut-free.
A recognized packaging innovation leader, Excel Pac is well‐known for its technical and product development expertise and has a strong R&D team. The company is a cofounder and creator of a broad innovation program which includes 20 researchers and the use of proprietary development equipment. The program is co-funded by the National Sciences and Engineering Research Council of Canada (NSERC).
Excel Pac will be integrated into Packaging Solutions Holdings and together forms an over $200 million packaging company. Packaging Solutions now produces a full suite of flexible packaging products for the food industry that includes adhesive laminated rollstock, extrusion laminated rollstock and finished pouches. The company has an in-house graphic design process from start-to-finish and in-house metallization and coating processes to achieve precise outcomes. With manufacturing locations in Massachusetts, Wisconsin and Quebec, the company's proprietary trade secrets and knowledge in tandem-head extrusion laminating allows it to duplicate the properties of complicated multi-layer film structures in a one-pass lamination operation. The company is currently taking delivery of one of the fastest and highest capability extrusion laminating lines of this type in the world which is being installed in its new plant in Wisconsin.
Mr. Vincent Musacchio, Excel Pac's Chief Executive Officer and owner, will be joining the Board of Packaging Solutions Holdings and his entire management team will remain with the company.
Mr. Musacchio said, "We are proud of the business we have built at Excel Pac and look forward to being part of a larger company that is committed to being a nimble, customer-oriented and responsive top tier supplier. With access to new, unique resources and products to offer our customers, the new company is ideally positioned to be a full-service and more critical supplier to the food and dairy industry."
Harold Bevis, Chairman and Chief Executive Officer of Packaging Solutions Holdings, said, "With its focus on manufacturing excellence and high-quality product performance, Excel Pac has distinguished itself as a gem in the industry. As we build a new high-end competitor in the flexible packaging industry, Excel Pac hits our sweet spot with its attractive, growing and recession-resistant end markets and high quality customer base. With the massive consolidation that has happened among food and medical packaging suppliers, we are going to fill the void by creating a new, strong, multi-skilled procurement option for discriminating buyers of packaging."
"The team at Excel Pac will be the center of excellence for printing and pouch making for our new company. There are substantial growth opportunities for us as we operate as one team. While I am proud that we have formed a Top 20 flexible packaging supplier within seven months, we are still just starting. We are extremely active building the company's capabilities and footprint through additional pin-pointed acquisitions and internal capex investment. I am happy that Vince is joining the Board and becoming my partner to help guide the company strategically."
Mesirow Financial served as financial advisor to Excel-Pac with respect to this transaction.
About Excel Pac
Founded in 1953 in Montreal, Canada, Excel Pac provides integrated flexible packaging solutions from rollstock to stand-up zip pouches for food products such as cheese, meats, snack foods and pet foods. Excel Pac is a leader in efficiency and sustainability operating some of the most technologically advanced machinery in the industry. The equipment includes wide web, 10-color, gearless, flexographic printing press; solventless laminators; high speed and high precision slitters and rewinders; and, industry-leading pouch making equipment. The strategic layout of its manufacturing facility allows for worker flexibility and manufacturing efficiency. Investments in its warehouses and equipment, include an award winning solvent recycling system, and help ensure the environmentally sustainable business practices. More information can be found at www.excel-pac.com.
About Packaging Solutions Holdings
Packaging Solutions Holdings was founded in 2010 by Wellspring Capital Management and industry veteran Harold Bevis. The company operates out of Lake Forest, IL and is creating a Top 10 North American packaging company focused on providing value-added packaging and services to the food, medical and consumer markets.
About Wellspring Capital Management
Wellspring Capital Management, founded in 1995, is a leading middle-market private equity firm that manages more than $3 billion of private equity capital. The firm's objective is to bring partnership, experience and value creation to each investment. By teaming up with strong management, Wellspring is able to unlock underlying value and pursue new growth opportunities through strategic initiatives, operating improvements and add-on acquisitions. The firm functions as a strategic rather than tactical partner, providing management teams with top-line support, M&A experience and financial expertise, and access to resources.
Kekst and Company
Mark Semer / Micheline Tang