NEW YORK May 20 The private equity owner of Pro Mach Inc is exploring a sale of the packaging equipment maker that could value it at close to $1 billion, according to people familiar with the matter, the latest in a wave of such deals in the sector.
Jordan Co, the New York-based buyout firm that owns Pro Mach, is working with investment bank Barclays Plc as it prepares the company for a sale process, the sources said.
Pro Mach has annual earnings before interest, taxes, depreciation and amortization of nearly $90 million, the sources said. They asked not to be identified because the deliberations were confidential.
Representatives of Jordan and Pro Mach did not immediately respond to requests for comment. Barclays declined to comment.
Loveland, Ohio-based Pro Mach provides packaging products, including bottle-capping machinery and labeling equipment, for food and drink, pharmaceutical, consumer goods and industrial companies.
Jordan and some members of Pro Mach's management team acquired the company in 2011 from Odyssey Investment Partners LLC, another private equity firm, for an undisclosed amount.
A sale of Pro Mach would come amid a wave of U.S. packaging companies changing private equity hands as the economy gradually recovers.
Buyout firm Platinum Equity LLC is exploring a sale of BWAY Corp, one of the largest makers of rigid metal and plastic containers in North America, which could fetch about $2 billion, sources told Reuters last week.
Earlier this month, private equity firm Castle Harlan Inc agreed to sell Pretium Packaging Corp to Genstar Capital Management LLC. And last month KPS Capital Partners LP agreed to buy glass packaging company Anchor Glass Container Corp from Ardagh Holdings USA Inc.
Jordan said earlier this month it had raised $3.2 billion for its third private equity fund, highlighting investor appetite for the so-called middle-market sector involving buyouts of mid-size companies. (Editing by Jeffrey Benkoe)