The private equity owners of Charter Next Generation are considering a sale that could value the packaging company at more than $4 billion, according to people with knowledge of the matter.
CNG’s backers, Leonard Green & Partners and Oak Hill Capital Partners, are working with an adviser to explore strategic options for the company, said the people, who asked not to be identified because they weren’t authorized to speak publicly. The Milton, Wisconsin-based company generated about $300 million in earnings before interest, taxes, depreciation and amortization last year, the people said.
The private equity owners could change their plans and decide against pursuing a sale of CNG, the people said.
A spokesperson for Oak Hill declined to comment. Representatives for CNG and Leonard Green didn’t respond to requests for comment.
Packaging companies have proved to be resilient assets during the coronavirus pandemic as consumers increasingly look to receive goods via delivery rather than shopping in person. Several companies in the sector are expected to trade hands this year, including Advent International-backed label maker Fort Dearborn and Crown Holdings Co.’s food can unit, people familiar with those matters have said.
Leonard Green first invested in Charter NEX Films in 2017, buying the company from Pamplona Capital Management. Leonard Green and Oak Hill agreed in 2019 to merge the company with Next Generation Films, founded by Dave Frecka. The combined company makes specialty films for food packaging, automobiles and manufactured housing, according to its website.
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