By Frank Esposito
SENIOR STAFF REPORTER
Published: November 18, 2013 2:58 pm ET
Updated: November 18, 2013 3:01 pm ET
Private equity firm American Securities has purchased specialty plastic films maker Tekni-Plex Inc. for an undisclosed price.
New York-based American Securities “found Tekni-Plex very attractive given our strategy of investing in market-leading companies,” managing director David Horing said in a Nov. 18 news release. “We believe the company is poised for a strong future.”
Tekni-Plex operates 25 plants in nine countries worldwide. The King of Prussia, Pa.-based firm consists of eight companies, including blister pack film maker Tekni-Films and perishable food packaging producer Dolco Packaging of Decatur, Ind. Other business units operated by Tekni-Plex — which was founded in 1967 — include Colorite Compounds and Action Technology, a leading plastic tubing maker.
In the year ended June 30, 2012, Tekni-Plex had sales of almost $655 million. More recent sales numbers were unavailable. In late 2012, Tekni-Plex spent $9 million to upgrade a plant making multilayer flexible packaging structures in Flemington, N.J.
American Securities is buying Tekni-Plex from Los Angeles-based Oaktree Capital Group LLC and Avenue Capital Group of New York. Those two private equity firms had been majority owners of Tekni-Plex since 2008.
In the release, Tekni-Plex CEO Paul Young said that working with American Securities “will enhance our ability to service our customers worldwide through ongoing investment in product development, technology and expansion of our global footprint.”
American Securities already owns a major plastics asset in the form of Advanced Drainage Systems Inc., the Hilliard, Ohio-based firm that ranks as North America’s largest maker of high density polyethylene pipe. ADS — with annual pipe-related sales of just over $1 billion — checked in at No. 2 in a recent Plastics News ranking of the region’s largest pipe, profile and tubing makers.
In September, plastics M&A pros Bill Ridenour and John Hart each predicted that Tekni-Plex — as well as plastic film leader Klockner Pentaplast Group, which remains on the market — would be sold to another private equity firm.
Ridenour — owner of Polymer Transaction Advisors Inc. in Newbury, Ohio — said at the time that selling Tekni-Plex “might be a challenge because of its diverse product mix.”
Hart — plastics and packaging group director for P&M Corporate Finance LLC in Southfield, Mich. — added that neither Tekni-Plex nor Klockner “has a real obvious strategic buyer.” | 
