Onex Corp's ONCAP Transitioning Ownership of PCI in Rigid Packaging Sector
- Onex Corp's ONCAP is transitioning its majority stake in Precision Concepts International to The Sterling Group.
- This move emphasizes ONCAP's focus on the growing rigid packaging market and specialized solutions.
- ONCAP remains committed to supporting PCI's growth alongside Sterling, leveraging their combined financial resources and expertise.
Onex Corp's Strategic Move in the Rigid Packaging Market
Onex Corporation's lower mid-market platform, ONCAP, is in the process of transitioning its majority ownership stake in Precision Concepts International, LLC (PCI) to The Sterling Group. This significant transaction highlights ONCAP's strategic focus in the rigid packaging sector, where PCI holds a competitive position. Based in Huntersville, North Carolina, PCI operates five manufacturing facilities across the United States and has additional locations in Canada and Costa Rica. The company specializes in providing rigid packaging solutions to small and mid-sized businesses, particularly in the consumer-focused sectors of personal care and food and beverage. This acquisition not only underscores the growing demand for specialized packaging solutions but also reflects ONCAP's commitment to fostering successful partnerships in the industry.
The Sterling Group aims to collaborate closely with existing stakeholders, including ONCAP and PCI's management team, to leverage the company’s established strengths. Ken Swanson, a seasoned executive in the specialty packaging field, will take over as Chairman of PCI’s Board of Directors following the transaction. Swanson's extensive experience is expected to drive PCI’s growth strategy, focusing on enhancing customer service and product quality—two key differentiators that have positioned PCI favorably within the market. Ray Grupinski, CEO of PCI, expresses appreciation for ONCAP's support over the past eight years and welcomes Sterling's involvement, which he believes will catalyze further expansion initiatives.
Both ONCAP and The Sterling Group bring substantial financial resources and expertise to the table. The Sterling Group manages $9.4 billion in assets and has a proven track record of executing over $25 billion in transactions, primarily in manufacturing, distribution, and industrial services. In this context, ONCAP, with $3.5 billion in assets under management, remains committed to supporting PCI's growth trajectory alongside Sterling. This partnership is poised to capitalize on emerging opportunities in the rigid packaging market, which is increasingly characterized by a demand for innovative and sustainable solutions.
As the transaction progresses, advisory firms are playing crucial roles: Evercore and Latham & Watkins represent Sterling, while William Blair and Stifel assist ONCAP. This collaboration indicates a well-coordinated effort to ensure a smooth transition and maximize the potential of PCI under new ownership.
In summary, the acquisition of PCI by The Sterling Group marks a pivotal moment for both the company and the rigid packaging industry. With strong management and a clear growth strategy, PCI is positioned well to take advantage of the evolving market landscape while benefiting from the continued support of ONCAP. This development reflects Onex Corp's ongoing commitment to building value through strategic partnerships and investments in high-potential sectors.