The Sterling Group, a private equity company located in the US, has reached a definitive agreement to purchase a substantial stake in speciality rigid packaging solutions provider Precision Concepts International (PCI) from ONCAP.
The financial details of the deal have not been divulged by the companies.
PCI CEO Ray Grupinski said: “I would like to thank ONCAP for their consistent, supportive partnership over the last eight years and their confidence in us to continue as a minority investor.
“Sterling’s decades-long commitment to employee buy-in and their proven track record within the industry is clear, and we look forward to working together towards continued growth and success in the years ahead.”
PCI operates five manufacturing facilities throughout the US, along with additional sites in Canada and Costa Rica.
The company primarily serves small to mid-sized enterprises in the stable consumer sectors, including household, personal care, and food and beverage.
Under the terms of the agreement, Sterling will work alongside existing investors, including ONCAP and management, to support the future development of PCI.
Ken Swanson, former CEO of Liqui-Box, which is part of Sterling’s portfolio, will assume the role of chair of PCI’s board of directors once the transaction is finalised.
ONCAP senior managing director Ryan Mashinter said: “It has been a privilege to partner with Ray and the outstanding PCI team. PCI reflects the essence of ONCAP’s investment approach – backing talented, ambitious leadership teams and executing against deep theses in our core sectors of emphasis where we have longstanding conviction.
“We’re excited to continue our journey with PCI alongside The Sterling Group as the business enters its next chapter of growth.”
Evercore served as the financial advisor while Latham & Watkins provided legal counsel to Sterling. William Blair and Stifel functioned as financial advisors, and Kirkland & Ellis served as the legal advisor to PCI.
