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February 19, 2010

BGL Announces Closing of Novapak Transaction

Brown Gibbons Lang & Company (BGL) today announced that its client, PVC Container Corporation d/b/a Novapak (“Novapak”), completed its previously announced merger with Pretium Packaging LLC, which was acquired by Castle Harlan, Inc., a New York-based buy-out firm. In connection with the transaction, BGL provided a fairness opinion to Novapak’s Board of Directors. The total transaction was valued at approximately $200 million. Debt facilities supporting the acquisition were led by Madison Capital Funding LLC and Sankaty Advisors, LLC.

Headquartered in Eatontown, New Jersey, Novapak is a leading custom blow molder of small to medium volume quantities of high quality bottles and containers for consumer and industrial products and is majority owned by Kirtland Capital Partners, a Cleveland-based private equity firm. Pretium Packaging is a St. Louis-based provider of custom blow molded packaging solutions for the food, pharmaceutical and personal care markets.

The combined business will generate more than $240 million of sales to over 500 customers from 14 manufacturing facilities in the U.S. and Canada. The new entity will retain the name Pretium Packaging and will be headquartered in Chesterfield, Missouri.

Bill Bergen, Novapak’s CEO stated, “We benefitted from BGL’s in-depth knowledge of the packaging industry and hands on approach throughout the process. Their knowledge and experience added significant value to the transaction.”

Said John Nestor of Kirtland Capital Partners, “BGL worked tirelessly to complete the transaction, their efforts helped to return significant value to Novapak’s shareholders.”

Andrew Petryk, managing director & principal at BGL commented, “We are impressed with the strong business platform built by Novapak management and Kirtland Capital Partners. We are pleased to have been able to leverage our packaging industry experience to add value to this transaction.”

Andrew Petryk and Kevin Sargent led the BGL transaction team. Chuck Hardin and Bill Stewart of Jones Day served as counsel to Novapak.

About Novapak

Novapak is a major producer of PET, PP, HDPE and in-line fluorinated HDPE containers for specialty chemical, personal care, healthcare, food, beverage, household and automotive applications. The company is headquartered in Eatontown, NJ, and operates five ISO 9001:2000 certified plants in New York, Pennsylvania, Illinois and South Carolina. The business specializes in small to medium volumes of medium to large size plastic bottles (8 oz & up) requiring rapid commercialization, customized designs and high package performance.

About Kirtland Capital

Kirtland Capital Partners is a relationship-oriented private equity firm focused on accelerating the growth of middle-market companies by leveraging its internal operating, financial and strategic resources. For more than 30 years, Kirtland has executed a disciplined investment strategy that has created long-term value in its portfolio companies and delivered superior returns to its investors and management teams. Kirtland invests in niche manufacturing, distribution and business service companies with potential for growth organically and/or through strategic acquisition. The firm has $290 million of capital under management from institutional and individual investors. Kirtland is known for the strong partnerships it builds with its operating management teams and the experience of its professionals.

About Pretium Packaging

Pretium Packaging was founded in 1992 to provide highly technical, blow molding supply solutions to customers with small to medium volume requirements. The company, headquartered in Chesterfield, MO, completed 11 acquisitions in the 1990’s and currently operates 9, ISO 9001:2000 rated manufacturing facilities in North America. Pretium produces blow molded plastic containers utilizing all major resin types with a primary focus on PET and HDPE and all processing technologies; single stage and two stage ISBM, IBM and EBM. While Pretium serves customers in most markets, more than 70% of the company’s sales are focused in the food, pharmaceutical and personal care markets. Pretium focuses on providing customers with leading edge unique design solutions with a dedicated focus on Quality, Service and Value.

About Castle Harlan

Castle Harlan, founded in 1987, invests in controlling interests in the buyout and development of middle-market companies in North America and Europe. Its team of 19 investment professionals has completed 50 acquisitions since its inception with a total value in excess of $9 billion. Castle Harlan currently manages investment funds with equity commitments of $2.5 billion. The firm traces its roots to the start of the institutionalized private-equity business in the late 1960s. Castle Harlan’s current portfolio companies, which employ more than 42,000 people, include Ames True Temper, a leading manufacturer of lawn and garden tools and accessories; Baker & Taylor, the largest global distributor of books and entertainment products to libraries and retailers, and Associated Packaging Technologies, Inc., a leader in specialty packaging for the frozen food industry.