Sterling Group acquires stake in Precision Concepts International

USA – The Sterling Group, a prominent U.S.-based private equity firm, has entered into a definitive agreement to acquire a substantial stake in Precision Concepts International (PCI), a leading provider of specialty rigid packaging solutions. 

PCI, headquartered in Huntersville, North Carolina, operates five manufacturing facilities across the United States, with additional sites in Canada and Costa Rica.

The company specializes in producing sticks, jars, vials, closures, spouts, bottles, and tubes, primarily serving small to mid-sized enterprises in stable consumer markets such as personal care, household products, and food and beverage. 

According to a company spokesperson, PCI’s focus on high-quality packaging and exceptional customer service has positioned it as a trusted partner in these sectors.

“We are thrilled to join forces with The Sterling Group,” said PCI CEO Ray Grupinski in a statement. 

“Their decades-long commitment to employee engagement and proven track record in the industry align perfectly with our vision. I also extend gratitude to ONCAP for their support over the past eight years and their confidence in us as minority investors moving forward.”

Under the agreement, Sterling will collaborate with existing investors, including ONCAP and PCI’s management team, to drive the company’s expansion. 

Ken Swanson, former CEO of Sterling’s portfolio company Liqui-Box, will assume the role of chairman of PCI’s board upon the deal’s closure, bringing extensive expertise to guide the company’s strategic direction.

Ryan Mashinter, senior managing director at ONCAP, expressed enthusiasm about the transition. 

“Partnering with Ray and the exceptional PCI team has been a privilege,” he said. 

“PCI embodies our investment philosophy of supporting ambitious leadership and leveraging deep sector expertise. We look forward to continuing this journey with Sterling as PCI embarks on its next growth phase.”

While the financial terms of Sterling’s acquisition remain undisclosed, Evercore acted as Sterling’s financial advisor, with Latham & Watkins providing legal counsel, while William Blair, Stifel, and Kirkland & Ellis advised PCI. 

In a related development, recent industry updates indicate heightened M&A activity in sustainable packaging, with firms like Berlin Packaging acquiring the Italian company Cosmei.

This acquisition opens new avenues for service delivery and innovation within the global cosmetics industry, infusing a fresh wave of creativity into an already powerful portfolio.

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