LongueVue Capital has closed the acquisition of Traco Packaging with senior debt backing from Abacus Finance Group.
Traco is a manufacturer and distributor of packaging equipment and shrink wrap packaging products including printed shrink labels, shrink film, polyolefin bags, and tamper-evident bands. The company’s products are used in range of industries including food, beverage, nutraceuticals, cosmetics and personal care, and pet care. Traco also manufactures shrink wrap machines and equipment such as portable bag sealers and heat guns.
Traco has more than 100 full-time employees and each business day produces more than 1 million printed and clear shrink sleeves and tamper-evident bands that are sold across the United States through a network of stocking distributors. Traco was founded in 1985 by John Palica and has more than 75,000 square feet of manufacturing, warehousing, and office space at its headquarters in Orem, Utah.
LongueVue partnered with Mr. Palica, CEO Owen Power, and other members of the company’s management team on this transaction.
“From our initial conversations and throughout the transaction process, LongueVue displayed a deep understanding of our business and industry, as well as an appreciation for our company’s unique characteristics and capabilities,” said Mr. Power. “I know I speak for the entire Traco team when I say we are excited to begin this new chapter in Traco’s history and continue to build a premier platform in the flexible packaging market.”
“We could not be more excited to partner with Traco,” said Ryan Nagim, a partner at LongueVue. “The company is a niche provider of highly customized labelling and other packaging solutions to attractive end markets, and throughout its growth, both John and Owen have maintained a steadfast commitment to quality and customer service. It is a pleasure to welcome Traco to the LongueVue family and make a strong addition to our specialty packaging and consumer portfolio.”
The senior credit facilities for this transaction were provided by Abacus Finance as administrative agent and lead arranger. “Once again, it was great to work with the Abacus team,” said Mr. Nagim. “This is our fourth transaction with Abacus, and we continuously rely on them for their flexibility and seamless execution capabilities.”
“As Ryan noted, this is our fourth financing with LongueVue, a firm for which we have come to have a great deal of respect,” said Tim Clifford, the president and CEO of Abacus.
The Abacus/Traco transaction team included Mr. Clifford, Director Eric Petersen, and Associate Austin Rendell.
“LongueVue is always enjoyable to partner with, and the firm knows the sector well given their platform history and operating partner network,” said Mr. Petersen, “which makes our due diligence easy, an important factor because LongueVue puts a high value on our flexibility and speed – key aspects of our Total Partnership Approach
.” The Total Partnership Approach is the firm’s operating strategy that merges its cash-flow financing expertise, deep industry knowledge and client service capabilities to give its private equity and family office sponsors the certainty of close and transactional peace of mind.
Abacus provides cash flow-based senior financing to private equity and family office-sponsored, lower-middle market companies that have EBITDA between $3 million and $15 million. Debt facilities can be as large as $50 million. Since its founding in June 2011, Abacus has closed over $2 billion in financings. The firm is headquartered in New York and is an affiliate of New York Private Bank & Trust which was founded in 1850.
LongueVue makes equity and debt investments of $10 million to $50 million in companies that have over $3 million of EBITDA and up to $150 million of annual revenue. Sectors of interest include healthcare, transportation and logistics, food and beverage, specialty packaging and manufacturing, industrial services, and consumer.
“Traco sits in a very exciting, high-growth market bolstered by robust tailwinds including increased focus on specialized packaging as a brand differentiator,” said John McNamara, LongueVue’s founder and managing partner. “We see Traco as the perfect platform to capitalize on these trends and grow both organically and through synergistic acquisitions.”
LongueVue closed LongueVue Capital Partners III LP in March 2017 at its hard cap of $252 million. The firm was founded in 2001 and is based in New Orleans with an additional office in Park City, Utah.
© 2021 Private Equity Professional | July 20, 2021
