TricorBraun, who was acquired by AEA Investments in 2016, has announced that it has entered into a definitive stock purchase agreement with funds managed by Ares Management Corporation’s private equity group and Ontario Teachers’ Pension Plan Board. Ares and Ontario Teachers’ will acquire a majority interest in the company.
The transaction is expected to close in the first quarter of 2021 and is subject to customary closing conditions and regulatory approvals.
TricorBraun’s management team, including executive chairman Keith Strope and president and CEO Court Carruthers, will continue to lead the company following the close of the transaction.
TricorBraun CEO Court Carruthers said, “Ares and Ontario Teachers’ are the right partners to help us expand on our steady growth as we continue to build the best place for the best people in packaging. We have had a tremendously successful partnership with AEA, culminating with record sales in 2020, and we look forward to working with Ares and Ontario Teachers’ to deliver even greater value to our customers and suppliers over the coming years.”
Brian Klos, partner, Ares’ Private Equity Group, said, “We believe that TricorBraun’s deep expertise, entrepreneurial approach, strong track record, and exceptional culture differentiate the company from its peers. We look forward to working with Court and TricorBraun’s strong management team to drive the next phase of the Company’s growth, both organically and through strategic acquisitions.”
Karen Frank, senior managing director, equities, at Ontario Teachers’ said, “TricorBraun is uniquely positioned to serve the requirements of the packaging industry. The Company has made significant investments in top talent and operations, and will seek to capitalize on those to drive long-term growth in the years ahead. We are thrilled to have the opportunity to partner with TricorBraun through its next chapter.”
Tom Pryma, partner, AEA, said, “We are proud of our work with Keith, Court, and the TricorBraun management team to help drive growth through a number of successful initiatives, creating significant long-term value. We value our strong partnership, and we are excited to continue our support of TricorBraun’s growth strategies.”