ProMach, a worldwide leader in processing and packaging machinery solutions, today announced that funds managed by BDT Capital Partners, LLC (“BDTCP”) have entered into a definitive agreement to acquire a significant stake in ProMach alongside Leonard Green & Partners, L.P. (“LGP”), the existing majority owner. BDTCP is an affiliate of BDT & MSD Partners, a merchant bank built to serve the distinct needs of business owners and strategic, long-term investors. As part of the agreement, LGP will invest new capital into the company. Financial terms were not disclosed.
Founded in 1998, ProMach’s portfolio includes 46 best-in-class processing and packaging solutions product brands serving manufacturers of all sizes, geographies, and industries. ProMach’s product brands manufacture, distribute, integrate, and support solutions across the entire production line in distinct areas including processing, filling, primary packaging, secondary packaging, labeling and coding, pharma, and systems integration.
“We are extremely enthusiastic as we enter our next phase of growth with two exceptional partners in LGP and BDT Capital Partners that share our common vision,” said Mark Anderson, President and CEO of ProMach. “ProMach has grown tremendously due to the hard work and creativity of our people that deliver innovative solutions to our customers every day across many different segments of the consumer products marketplace. Our outstanding management team appreciates the strong existing partnership with LGP and looks forward to working with both them and the team at BDT Capital Partners as we continue our focus on growth and value creation for our customers across the globe.”
“Personally, I’m so proud of all our employees and the hard work and effort they bring every day to strengthen ProMach’s reputation as a trusted partner to our customers,” added Mr. Anderson. “We wouldn’t be where we are without their tremendous talent and energy, and we are very fortunate to have great teams at all our product brands that are passionate about our products, our customers, and collaborating with other ProMach product brands to deliver performance each and every time.”
“Under Mark Anderson’s skilled leadership over the past 17 years, ProMach has established an exceptional track record of performance and solidified its position as a leader in the U.S. processing and packaging machinery market,” said Byron Trott, Chairman & Co-CEO, BDT & MSD Partners. “We believe ProMach is well positioned to capitalize on secular industry tailwinds, including the transition to sustainable packaging and the accelerating adoption of automation technologies, and we look forward to supporting the company’s continued expansion and success.”
"We extend our sincere gratitude to the entire ProMach team for their outstanding work in building a world-class organization,” said Jon Sokoloff, Managing Partner of LGP. Chris McCollum, Partner of LGP, added “We look forward to partnering with BDTCP in the next stage of ProMach’s growth and success. Since we partnered with the ProMach team over five years ago, the company has been a consistent strong performer and has delivered exceptional growth and value to all stakeholders with its proven business process. We are excited about the many growth opportunities that lie ahead and look forward to continuing our support of the company.”
The transaction is expected to close in the second half of 2023 and is subject to customary regulatory approvals. Goldman Sachs & Co. LLC served as lead financial advisor to ProMach. Morgan Stanley & Co. LLC also provided financial advice to the company. Latham & Watkins LLP and Thompson Hine LLP acted as legal advisors to ProMach.
About BDT Capital Partners
BDT Capital Partners provides family- and founder-led businesses with long-term, differentiated capital through its investment funds. It is an affiliate of BDT & MSD Partners, a merchant bank with an advisory and investment platform built to serve the distinct needs of business owners and strategic, long-term investors. Since 2010, BDT & MSD Partners’ affiliated funds have deployed more than $50 billion across their investment strategies. For more information, visit www.bdtmsd.com.
LGP is a leading private equity investment firm founded in 1989 and based in Los Angeles with $70 billion of assets under management. The firm partners with experienced management teams and often with founders to invest in market-leading companies. Since inception, LGP has invested in over 120 companies in the form of traditional buyouts, going-private transactions, recapitalizations, growth equity, and selective public equity and debt positions. The firm primarily focuses on companies providing services, including consumer, healthcare, and business services, as well as retail, distribution and industrials. For more information, please visit www.leonardgreen.com.
ProMach is a family of best-in-class packaging and processing solution brands serving manufacturers of all sizes and geographies in the food, beverage, pharmaceutical, personal care, and household and industrial goods industries. ProMach brands operate across the entire production line: processing, filling, bottling and capping, decorative labeling, flexibles and trays, pharma, handling and sterilizing, labeling and coding, and robotics and end of line. ProMach also provides systems and integration including turnkey solutions, design/build, engineering services, and productivity software to optimize production line design and deliver maximum uptime.
ProMach designs, manufactures, integrates, and supports the most sophisticated and advanced packaging and processing solutions in the global marketplace. Its diverse customer base, from Fortune 500 companies to smaller, privately-held businesses worldwide, depends on reliable, flexible, technologically advanced equipment and integrated solutions. ProMach is headquartered near Cincinnati, Ohio, with manufacturing facilities and offices throughout North America, Europe, South America, and Asia. For more information about ProMach, visit www.ProMachBuilt.com and for more information on ProMach Careers, visit www.ProMachCareers.com.