| NEW YORK, June 10
NEW YORK, June 10 Buyout firm Odyssey Investment
Partners LLC is exploring a sale of Ranpak Corp that could value
the company, one of the world's largest producers of protective
paper packaging materials, at close to $1 billion, according to
people familiar with the matter.
Odyssey has hired investment banks Barclays Plc and
Harris Williams & Co to run an auction for Ranpak, the people
said this week. Ranpak has annual earnings before interest,
taxes, depreciation and amortization of around $90 million, some
of the people added.
The people asked not to be identified because the process is
not public. Odyssey and Barclays declined to comment, while
Ranpak and Harris Williams representatives did not respond to
requests for comment.
Founded in 1972, Ranpak makes paper packaging products that
protect and cushion items during shipping. It serves a variety
of industries, including the industrial, automotive, medical,
consumer products and technology sectors.
Odyssey acquired the Concord Township, Ohio-based company in
2008 from American Capital Strategies Ltd. The purchase
price was not disclosed at the time, but Weil, Gotshal & Manges
LLP, a law firm that advised American Capital on the
transaction, currently has the price tag of that deal on its
website as $410 million.
A sale of Ranpak would be the latest in a wave of deals in
the industrial and consumer packaging sectors as a modest
economic recovery spurs private equity firms to seek out
companies in this area with strong cash flows and high barriers
Platinum Equity LLC is exploring the sale of BWAY Corp, one
of the largest makers of rigid metal and plastic containers in
North America, for around $2 billion, while the Jordan Company
is considering the sale of packaging equipment maker Pro Mach
Inc for close to $1 billion, Reuters reported last month.
(Reporting by Greg Roumeliotis and Soyoung Kim in New York)