The Canada Pension Plan Investment Board is investing about $665 million in an American packaging supplier as part of a recapitalization deal with private equity firm Oak Hill Capital Partners.
Berlin Packaging sells plastic, glass and metal containers and provides warehousing and logistical services.
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“Berlin Packaging is a market leader with a resilient business model built to deliver economic value and brand differentiation for its customers,” said Ryan Selwood, managing director and head of direct private equity at the CPPIB, in a press release.
The company will use the investment to make acquisitions in North America and Europe, expand its sales team and invest in its e-commerce capabilities, according to chief executive officer and chairman Andrew Berlin.
“Alongside our equity partner, Oak Hill, we look forward to supporting further growth and innovation by this industry-leading company that Andrew Berlin and his team have created, as Berlin Packaging continues to expand its value proposition to customers, suppliers and employees,” said Selwood.
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Berlin and the company’s management team will also make a sizeable investment as part of the recapitalization agreement, noted the release, though it didn’t disclose the financial terms.
The transaction is expected to close by the end of the year.