TricorBraun To Be Acquired By Ares Management And Ontario Teachers' Pension Plan Board

Rhea-AI Summary

TricorBraun has announced a definitive stock purchase agreement with funds managed by Ares Management and Ontario Teachers' Pension Plan Board to acquire a majority interest in the company. TricorBraun will continue to be led by its existing management team, retaining significant investment in the company. The transaction aims to leverage Ares and Ontario Teachers' resources to accelerate TricorBraun's growth in the packaging industry, which generated $1.5 billion in annual sales in 2020. The deal is expected to close in Q1 2021, pending regulatory approvals.

Positive

• Acquisition by Ares and Ontario Teachers' will provide additional resources for growth.
• TricorBraun's management team will remain in place, ensuring continuity.
• The company generated record sales of $1.5 billion in 2020, indicating strong market position.

Negative

• None.

ST. LOUIS, Jan. 7, 2021 /PRNewswire/ -- Global packaging leader TricorBraun (the "Company") announced today that it has entered into a definitive stock purchase agreement with funds managed by Ares Management Corporation's (NYSE: ARES) Private Equity Group ("Ares") and Ontario Teachers' Pension Plan Board ("Ontario Teachers'"). Ares and Ontario Teachers' will acquire a majority interest in the Company. 

TricorBraun's management team, including Executive Chairman Keith Strope and President and CEO Court Carruthers, will continue to lead the Company following the close of the transaction. TricorBraun's leadership team will also retain a significant investment in the company, as will its current majority owner, AEA Investors.

"Ares and Ontario Teachers' are the right partners to help us expand on our steady growth as we continue to build the best place for the best people in packaging," said Carruthers. "We have had a tremendously successful partnership with AEA, culminating with record sales in 2020, and we look forward to working with Ares and Ontario Teachers' to deliver even greater value to our customers and suppliers over the coming years."

TricorBraun is North America's largest primary packaging distributor and one of the largest providers of packaging in the world. The company serves consumer packaged goods companies, from cutting-edge start-ups to the world's most iconic brands, and is a critical packaging provider for the essential personal care and household cleaning, food and beverage, and healthcare/nutraceutical industries. From rigid to flexible packaging, stock and custom capabilities, and countless options of materials, industries, and markets served, TricorBraun's range of packaging solutions sets it apart. Serving customers since 1902, TricorBraun has grown to $1.5 billion in annual sales, with more than 1,100 team members in 50 locations throughout North America, Europe, and Asia.

"We believe that TricorBraun's deep expertise, entrepreneurial approach, strong track record, and exceptional culture differentiate the company from its peers," said Brian Klos, Partner, Ares' Private Equity Group. "We look forward to working with Court and TricorBraun's strong management team to drive the next phase of the Company's growth, both organically and through strategic acquisitions."

"TricorBraun is uniquely positioned to serve the requirements of the packaging industry," said Karen Frank, Senior Managing Director, Equities, at Ontario Teachers'. "The Company has made significant investments in top talent and operations, and will seek to capitalize on those to drive long-term growth in the years ahead. We are thrilled to have the opportunity to partner with TricorBraun through its next chapter."

"We are proud of our work with Keith, Court, and the TricorBraun management team to help drive growth through a number of successful initiatives, creating significant long-term value," said Tom Pryma, Partner, AEA. "We value our strong partnership, and we are excited to continue our support of TricorBraun's growth strategies."

The transaction is expected to close in the first quarter of 2021 and is subject to customary closing conditions and regulatory approvals.

About TricorBraun
Founded in 1902, TricorBraun is North America's largest distributor of primary packaging and one of the largest purchasers of packaging in the world. The company provides innovative solutions across a wide array of customer end markets in plastic and glass containers, closures, dispensers, tubes and flexibles. TricorBraun operates from 50 locations globally. Our award-winning Design & Engineering Center provides forward-thinking design, driven by consumer insight and creative solutions. Other services include global sourcing, manufacturing oversight and global supply chain programs. Visit www.tricorbraun.com.

About Ares Management Corporation
Ares Management Corporation (NYSE: ARES) is a leading global alternative investment manager operating integrated groups across Credit, Private Equity, Real Estate and Strategic Initiatives. Ares Management's investment groups collaborate to deliver innovative investment solutions and consistent, attractive investment returns for fund investors throughout market cycles. As of September 30, 2020, Ares Management's global platform had approximately $179 billion of assets under management with more than 1,400 employees operating across North America, Europe and Asia Pacific. For more information, please visit www.aresmgmt.com.

About Ontario Teachers' Pension Plan Board
Ontario Teachers' is the administrator of Canada's largest single-profession pension plan, with C$204.7 billion in net assets (all figures at June 30, 2020 unless noted). It holds a diverse global portfolio of assets, approximately 80% of which is managed in-house, and has earned an annual total-fund net return of 9.5% since the plan's founding in 1990. Teachers' is an independent organization headquartered in Toronto. Its Asia-Pacific regional offices are in Hong Kong and Singapore, and its Europe, Middle East & Africa region office is in London. The defined-benefit plan, which is fully funded as of January 1, 2020, invests and administers the pensions of the province of Ontario's 329,000 active and retired teachers. For more information, visit otpp.com and follow us on Twitter @OtppInfo.

About AEA
AEA Investors LP was founded in 1968 by the Rockefeller, Mellon and Harriman family interests and S.G. Warburg & Co. as a private investment vehicle for a select group of industrial family offices with substantial assets. AEA has an extraordinary global network built over many years which includes leading industrial families, business executives and leaders; many of whom invest with AEA as active individual investors ("Participants") and/or join its portfolio company boards or act in other advisory roles. Today, AEA's approximately 90 investment professionals operate globally with offices in New York, Connecticut, London, Munich and Shanghai. The firm manages funds that have over $15 billion of invested and committed capital including the leveraged buyouts of middle market companies and small business companies and mezzanine and senior debt investments. AEA Private Equity invests across three sectors: value added industrials, consumer and services.

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SOURCE TricorBraun

FAQ

What is the purpose of Ares and Ontario Teachers' acquisition of TricorBraun?

The acquisition aims to provide TricorBraun with additional resources to accelerate growth in the packaging industry.

When is the TricorBraun acquisition by Ares expected to close?

The transaction is expected to close in the first quarter of 2021, pending regulatory approvals.

Who will lead TricorBraun after the acquisition?

TricorBraun will continue to be led by its existing management team, including Executive Chairman Keith Strope and President and CEO Court Carruthers.

What financial impact did TricorBraun have in 2020?

TricorBraun reported record sales of $1.5 billion in 2020.

Who are the major investors involved in the acquisition of TricorBraun?

The acquisition involves Ares Management Corporation and Ontario Teachers' Pension Plan Board.