Odyssey Investment Partners LLC announced today that it has acquired Ranpak Inc., a leading global manufacturer and marketer of "in-the-box" paper-based protective packaging, from American Capital Strategies Ltd.
Ranpak's management team invested alongside Odyssey in the transaction. American Capital and Apollo Investment Corporation provided debt financing in support of the transaction.
INFO SOURCES
Odyssey Investment Partners LLC; American Capital Strategies Ltd. (NASDAQ: ACAS)
FIRMS
Odyssey Investment Partners LLC, based in New York, is a leading middle-market private equity fund with more than $1.2 billion under management. Odyssey makes majority, control investments primarily in established middle-market companies in a variety of industries, including industrial manufacturing, business, financial and healthcare services, aerospace products, and localized and route-based service businesses.
American Capital is the only alternative asset management company in the S&P 500. With $20 billion in capital resources under management, American Capital is the largest U.S. publicly traded private equity fund and one of the largest publicly traded alternative asset managers. American Capital, both directly and through its global asset management business, is an investor in management and employee buyouts, private equity buyouts, and early stage and mature private and public companies. American Capital provides senior debt, mezzanine debt and equity to fund growth, acquisitions, recapitalizations and securitizations. American Capital and its affiliates invest from $5 million to $800 million per company in North America and EUR 5 million to EUR 500 million per company in Europe.
Apollo Investment Corporation is a closed-end investment company that has elected to be treated as a business development company under the Investment Company Act of 1940. The Company's investment portfolio is principally in middle-market private companies. From time to time, the Company may also invest in public companies. The Company invests primarily in senior secured loans and mezzanine loans and equity in furtherance of its business plan. Apollo Investment Corporation is managed by Apollo Investment Management, L.P., an affiliate of Apollo Management, L.P., a leading private equity investor.
Founded in 1972, Ranpak manufactures two principal types of paper converter machines - cushioning machines and void-fill machines - that are marketed through distributors to end-users who buy paper produced by Ranpak. The Company's end-users include fulfillment and distribution centers and OEMs in North America, Europe and the Pacific Rim. Ranpak is headquartered in Concord Township, Ohio and has facilities in Reno, Nevada; Heerlen, The Netherlands; and Kansas City, Kansas. Ranpak has more than 300 employees worldwide.
PEOPLE
Robert Klein, American Capital Managing Director, Buyout Group
John Erickson, American Capital Chief Financial Officer
Brian Graff, American Capital Regional Managing Director
Todd Wilson, American Capital Principal, Buyout Group
Chris Carey, American Capital Principal, Sponsor Finance Group
Brian Kwait, a Managing Principal of Odyssey Investment Partners
NOTE
American Capital acquired control of Ranpak in December 2005, investing $284 million in subordinated debt and equity. American Capital has realized total gains on its investment in Ranpak of $77 million, earning a 31% compounded annual rate of return on its senior debt, subordinated debt and equity investments, including interest, dividends and fees earned over the life of its investment. On its equity only investments, American Capital earned a 40% compounded annual rate of return, including dividends and fees earned over the life of its investment.
December 14, 2005 - American Capital Strategies Ltd. (Nasdaq:ACAS) announced today it has invested $284 million in the buyout of Ranpak Corporation from First Atlantic Capital Ltd. Ranpak is a leading manufacturer and marketer of paper-based "in-the-box" protective packaging systems and materials in North America, Europe and the Pacific Rim. American Capital's investment takes the form of senior and junior subordinated debt and redeemable preferred and common equity. A syndicate led by GE Antares Capital, a unit of GE Commercial Finance, is investing in a senior term B loan and also providing a revolving credit facility. Rankpak's management team is also investing in the equity. Post close, American Capital owns approximately 85% of Ranpak, on a fully diluted basis.
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