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Investing.com -- Onex Corp (TSX:ONEX) stock ticked lower by 1% on Tuesday following the announcement that The Sterling Group has agreed to acquire a majority ownership stake in Precision Concepts International, LLC (PCI) from ONCAP, Onex’s lower mid-market private equity platform.
Houston-based Sterling Group will partner with existing PCI investors, including ONCAP and management, to support the specialty rigid packaging solutions provider’s continued growth. The financial terms of the transaction were not disclosed.
PCI, headquartered in Huntersville, North Carolina, operates five manufacturing facilities across the U.S., with additional locations in Canada and Costa Rica. The company services small to mid-size companies in consumer-focused sectors including personal care, household, and food and beverage products.
Upon closing of the transaction, Ken Swanson, former CEO of Sterling portfolio company Liqui-Box, will serve as Chairman of PCI’s Board of Directors. Ray Grupinski will continue as PCI’s Chief Executive Officer.
"PCI’s unique track record of elevated customer service and product quality is the perfect foundation for continued expansion," said Greg Elliott, Partner at The Sterling Group, adding that the firm looks forward to helping accelerate PCI’s nationwide expansion.
Ryan Mashinter, Senior Managing Director at ONCAP, noted that ONCAP will continue its journey with PCI alongside The Sterling Group as "the business enters its next chapter of growth."
Evercore acted as financial advisor to The Sterling Group, while William Blair and Stifel served as financial advisors to PCI for the transaction.