The Canada Pension Plan Investment Board (CPPIB) is set to invest $500m in US-based Berlin Packaging, as part of the recapitalization agreement.
Oak Hill Capital Partners and CPPIB have signed a recapitalization agreement with Berlin Packaging to extend support in the next stage of its growth.
The Berlin Packaging management team, including chairman and CEO Andrew Berlin, will also invest in the company to help expand operations.
As per terms of the deal, which is expected to be completed by the end of this year, the management team headed by Andrew Berlin will continue to manage Berlin Packaging.
CPPIB direct private equity head and managing director Ryan Selwood said: “Berlin Packaging is a market leader with a resilient business model built to deliver economic value and brand differentiation for its customers.
“Alongside our equity partner, Oak Hill, we look forward to supporting further growth and innovation by this industry-leading company that Andrew Berlin and his team have created, as Berlin Packaging continues to expand its value proposition to customers, suppliers and employees.”
Based in Chicago of Illinois, Berlin Packaging provides a range of packaging products and services to the companies in various industries to streamline packaging supply chains and optimize profits.
With $1.4bn annual sales, the firm is specialized in offering glass, plastic, metal container and closure solutions to its customers.
Berlin Packaging offers services such as structural and brand design, worldwide sourcing, warehousing and logistics, and capital financing.
The company serves customers in various industries, including beverage, food, automotive, home care, industrial chemical, person health and beauty, pharmaceutical, nutraceutical and healthcare, wine, spirits, beer and cannabis.
Berlin said: “The Berlin Packaging team is excited to deepen our relationship with valued strategic partners, Oak Hill and CPPIB.
“This transaction allows us to take our business to an even higher level as we pursue multiple strategic initiatives, including acquisitions in North America and Europe, additions to our sales and service teams, and more investment in our ecommerce capabilities.”