BDT Capital Partners LLC (BDTCP) entered into a definitive agreement to acquire a "significant stake" in ProMach, alongside Leonard Green & Partners, L.P. (LGP), the existing majority owner.
BDTCP is an affiliate of BDT & MSD Partners, a merchant bank built to serve the distinct needs of business owners and strategic, long-term investors. As part of the agreement, LGP will invest new capital into the company. Financial terms were not disclosed.
Founded in 1998, ProMach’s portfolio includes 46 processing and packaging solutions product brands serving manufacturers of all sizes, geographies and industries. ProMach’s product brands manufacture, distribute, integrate, and support solutions across the entire production line in distinct areas including processing, filling, primary packaging, secondary packaging, labeling and coding, pharma, and systems integration.
“We are extremely enthusiastic as we enter our next phase of growth with two exceptional partners in LGP and BDT Capital Partners that share our common vision,” said Mark Anderson, president and CEO of ProMach. “ProMach has grown tremendously due to the hard work and creativity of our people that deliver innovative solutions to our customers every day across many different segments of the consumer products marketplace. Our outstanding management team appreciates the strong existing partnership with LGP and looks forward to working with both them and the team at BDT Capital Partners as we continue our focus on growth and value creation for our customers across the globe.”
“Personally, I’m so proud of all our employees and the hard work and effort they bring every day to strengthen ProMach’s reputation as a trusted partner to our customers,” added Anderson. “We wouldn’t be where we are without their tremendous talent and energy, and we are very fortunate to have great teams at all our product brands that are passionate about our products, our customers, and collaborating with other ProMach product brands to deliver performance each and every time.”
"We extend our sincere gratitude to the entire ProMach team for their outstanding work in building a world-class organization,” said Jon Sokoloff, managing partner of LGP.
Chris McCollum, Partner of LGP, added “We look forward to partnering with BDTCP in the next stage of ProMach’s growth and success. Since we partnered with the ProMach team over five years ago, the company has been a consistent strong performer and has delivered exceptional growth and value to all stakeholders with its proven business process. We are excited about the many growth opportunities that lie ahead and look forward to continuing our support of the company.”
The transaction is expected to close in the second half of 2023 and is subject to customary regulatory approvals. Goldman Sachs & Co. LLC served as lead financial advisor to ProMach. Morgan Stanley & Co. LLC also provided financial advice to the company. Latham & Watkins LLP and Thompson Hine LLP acted as legal advisors to ProMach.
