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Exclusive: Tide Rock acquires Premier Packaging

Illustration of a cardboard box full of money.

Illustration: Aïda Amer/Axios

Tide Rock has acquired contract packaging company Premier Packaging, president Brooks Kincaid tells Axios exclusively.

Why it matters: The paper and packaging sector has become a hot area for private equity due to its typically resilient end markets and replicable "value creation" playbook.

Zoom in: The private equity firm paid for the company in cash as well as an offer to convert that into Tide Rock equity if they so choose.

  • Premier Packaging "fits a very important and consistent need for a large variety of companies, and they happen and then they also happen to be located in a good spot to develop on," Kincaid says.
  • The Memphis, Tennessee company has three warehouses near the Memphis International Airport, a major domestic and international hub.
  • Part of what Tide Rock set out to do is to bring more awareness to Premier's brand and capabilities, Kincaid says.

By the numbers: Tide Rock didn't disclose financial terms, but said it typically looks for companies in the range of a multiple of 4x-5x on an EBITDA of $2 million to $5 million.

The latest: Premier Packaging has tapped Ignacio Campos, who was previously an executive at KIK Consumer Products' pool division and Master Lock Company, as its new CEO.

  • He will work with closely with founder Bill McNeil, the company says.

What's next: Premier Packaging wants to expand its customers and new product categories beyond its CPG and manufacturing base.

  • The company will also aim to expand in new geographies where it can "replicate the same model with the right partner," Campos says.
  • The company plans to add more services, such as in warehousing and third-party logistics.

The big picture: There were more than 2,000 transactions in the space since 2007, with about 84 of those deals exceeding a value greater than $1 billion and 11 that were over $5 billion, according to a 2023 Bain & Co. report.

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