US-based Odyssey Investment Partners has announced that the company is exploring the $1bn sale of Ranpak, a manufacturer of 'in-the-box' paper-based protective packaging.
Investment banks Barclays and Harris William have been appointed by the private equity investment firm in order to carry out an auction for the packaging firm, reports Reuters.
Ranpak is said to have annual earnings before interest, taxes, depreciation and amortization (EBITDA) of $90m, people close to the company said.
In Jaunary 2008, Odyssey acquired Ranpack from alternative asset management company American Capital Strategies for an undisclosed value.
According to law firm Weil, Gotshal & Manges that advised American Capital, the deal was worth about $410m.
Odyssey and Barclays, as well as Ranpak and Harris have declined to comment on the sale.
Based in Ohio, Ranpak manufactures two types of paper converter machines, comprising cushioning machines and void-fill machines, which are marketed through distributors to end-users.
The end-users of the company include fulfillment and distribution centers and OEMs in North America, Europe and the Pacific Rim.
The company, which was founded in 1972 and with 300 employees, has facilities in Reno of Nevada and Kansas City of Kansas in US, as well as in Heerlen, The Netherlands. It serves different industries such as including the industrial, automotive, medical, consumer products and technology sectors.
Image: Odyssey mulls sale of protective packaging manufacturer Ranpak for $1bn. Photo: courtesy of Grant Cochrane/ FreeDigitalPhotos.net.