Specialty film producers Next Generation Films and Charter NEX Films have agreed to combine their operations to create a new platform for the specialty films market.
Charter NEX owners Leonard Green & Partners (LGP) and Oak Hill Capital signed an agreement with Next Generation Films CEO, founder and owner Dave Frecka to combine the companies.
Under the deal, Frecka will own majority share in the combined company, and will also continue to serve as CEO of Next Generation Films. The deal is expected to be completed by June.
Charter NEX CEO Kathy Bolhous said: “By blending our complementary assets, capabilities and expertise, we will create a powerful value proposition for our customers. With these two companies combining forces, there’s no limit to what we can do for our customers.”
Charter NEX is a major North American firm that produces high-performance specialty film for flexible packaging and other end-use markets.
The company is expertise in producing various films ranging from monolayer to multilayer, blown to cast, and breathable to barrier.
Next Generation Films produces specialty films for different markets, including the food packaging, automobile, courier, manufactured housing and protective packaging segments.
Next is a major blown film company that produces advanced film structures for the customers across the country and around the world.
Both firms have substantial brands and advanced assets, in addition to complementary products and focus on different market segments.
The combined company is believed to offer customers with benefits, including access to new markets, enhanced technical expertise, and an expanded manufacturing footprint.
With 11 manufacturing plants, the combined firm will manage over 100 extrusion lines in Ohio, Wisconsin, South Carolina and Massachusetts.
Charter NEX and Next Generation Films intend to maintain their existing management teams and brand identities, operating as two distinct but synchronized divisions of the combined firm.
Frecka said: “By joining these two market leaders together, we will be able to offer customers a broader scope of capabilities and product solutions, while leveraging our combined scale to offer the most technically-engineered specialty films.”