Onex Corp. Sells Majority Stake in PCI to Sterling Group for Growth in Packaging Solutions
- Onex Corp's ONCAP sells majority stake in PCI to The Sterling Group, signaling growth in rigid packaging.
- ONCAP remains involved in PCI's future, supporting its transition to new ownership and strategic growth initiatives.
- Ray Grupinski appreciates ONCAP's partnership, highlighting its role in PCI's development and future opportunities.
Onex Corp Transitions PCI to Sterling Group, Signaling New Growth Phase for Packaging Solutions
Onex Corporation's lower mid-market platform, ONCAP, facilitates a significant transition in the rigid packaging sector as it announces the sale of a majority stake in Precision Concepts International, LLC (PCI) to The Sterling Group. This acquisition not only marks a pivotal moment for PCI but also underscores ONCAP's strategic focus on fostering growth in the packaging industry. PCI, based in Huntersville, North Carolina, has established itself as a leading provider of rigid packaging solutions, serving a diverse clientele in consumer-centric sectors including personal care and food and beverage. The company operates five manufacturing facilities in the U.S. and additional sites in Canada and Costa Rica, showcasing its strong operational footprint.
As the transaction unfolds, The Sterling Group, a Houston-based private equity firm with a robust history of managing $9.4 billion in assets, aims to leverage its expertise to propel PCI into its next growth phase. Sterling's strategy includes collaborating with existing investors such as ONCAP and PCI’s management team, led by CEO Ray Grupinski, to enhance operational efficiencies and explore new avenues for expansion. The appointment of Ken Swanson, a veteran in the specialty packaging sector, as Chairman of PCI’s Board of Directors signifies a commitment to steering the company towards sustained growth through both organic initiatives and strategic acquisitions. This leadership transition is expected to further strengthen PCI's customer service and product quality, which are regarded as vital competitive advantages in the packaging market.
Ray Grupinski expresses gratitude to ONCAP for its eight-year partnership, highlighting the solid foundation it has provided for PCI's development. With Sterling's commitment to investing in PCI's growth, the company is poised for a transformative journey, capitalizing on its existing strengths while exploring new market opportunities. The transaction, advised by financial firms Evercore and Latham & Watkins for Sterling and William Blair and Stifel for ONCAP, reflects the ongoing consolidation trends in the private equity sector, particularly within the manufacturing and distribution markets.
In addition to the sale, ONCAP continues its involvement in PCI's future, maintaining a supportive role as the company transitions to new ownership. This strategic move aligns with ONCAP's focus on growth and innovation within its investment portfolio, emphasizing its dedication to nurturing companies that excel in their respective industries.
As the packaging landscape evolves, the collaboration between The Sterling Group and PCI promises to enhance the company's market position and drive innovation in rigid packaging solutions, setting the stage for a new chapter in its operational journey.