PE firm Leonard Green close to buying US packaging company Pro Mach for around $2.2 bn

Private equity firm Leonard Green & Partners close to finalising a deal to buy US packaging company Pro Mach Group Inc from peer AEA Investors for more than $2.2 billion, including debt, Reuters yesterday reported, citing people familiar with the matter.

A successful deal would come eight months after Leonard Green acquired US-based manufacturer of specialty films for the food and medical industries Charter NEX Films Inc, for $1.5 billion.

Leonard Green has agreed to pay AEA the equivalent of about 15 times Pro Mach's 12-month earnings before interest, taxes, depreciation and amortisation to clinch the deal, a hefty price for a company in this sector, the report  said.

AEA Investors had acquired Pro Mach Group from New York-based buyout firm Jordan Co in 2014 for about $1 billion, including debt.

Founded in 1998 and based in Kentucky, Pro Mach provides integrated packaging products and machinery for the food, beverage, household goods and pharmaceutical industries.

It has 39 manufacturing facilities, and 17 sales and support offices, and over 25 go-to-market product brands that offer packaging machinery, processing machinery, label manufacturing, plastic parts manufacturing, equipment training, and aftermarket parts and service.

Its manufacturing facilities and offices are located throughout the US, Canada, Mexico, Brazil, Europe, United Arab Emirates, Malaysia, and China.