Key Principal Partners Announces Sale Of Ampac Packaging, LLC

KPP Portfolio Company Grew Significantly Through KPP Partnership

Cleveland - Key Principal Partners (KPP), a $1 billion private equity firm, announced the sale of Ampac Packaging, LLC (Ampac) to a group led by Prudential Capital Group and Falcon Investment Advisors. Ampac's management team will retain ownership interest along with Prudential and Falcon.

Ampac is a leading producer of high-volume paper and plastic packaging products, including upscale shopping bags for national retailers and other specialty food and consumer packaging products. The company is based in Cincinnati, OH and has manufacturing operations throughout North America and Asia.

KPP made its initial investment in the company in 2000, when it invested $9 million in subordinated debt to facilitate the acquisition of Interstate Packaging Corporation (later renamed Ampac Paper) by the Fisher Investment Group. In 2001, KPP formed Ampac Packaging LLC to acquire a majority interest in Ampac Paper as well as its sister company, Ampac Plastics. KPP has invested $22 million in total since 2000.

Since KPP's initial investment, Ampac has completed five acquisitions as company revenues grew from less than $80 million per year to approximately $225 million per year. In addition, KPP invested in the development of the Ampac Flexibles division and assisted the company in setting up operations in China.

"This was an enormously successful transaction for KPP," said Leland Lewis, Managing Partner at KPP. "While we will miss our day-to-day interactions with the Ampac team, we are confident that they, and the company, will continue to thrive."

SOURCE: Key Principal Partners (KPP)