Private equity fund THC acquires paper packaging manufacturer Promar
Polish private equity fund THC has acquired Promar, a manufacturer of paper packaging, THC announced in a press release. It was indicated that the new investor will help the company exploit the market potential, increase production capacity and strengthen its position on the European market for sustainable packaging.
"In the absence of a successor, the family began searching for an investor who would ensure the company's further development and a stable future. The THC private equity fund proved to be the right partner to carry out this change – as part of the succession transaction, the previous owners sold 100 percent of Promar's shares to the fund," THC said in the press release.
It was indicated that THC has EUR 120 million in capital available as part of its fourth fund, which it will allocate in the coming years to the development of medium-sized Polish companies – especially those in manufacturing industries with an environmentally friendly profile and operating in growing markets, such as Promar.
Promar is a company based in Jarocin, which offers a range of paper bags, including gusseted bags, block bottom bags and shopping bags with handles, with or without printing. The offer also includes packaging for loose products and wrapping paper.
As stated in the press release, the growing demand for paper packaging, driven by EU regulations limiting the use of plastic and growing consumer awareness, is conducive to the further development of the entire sector.
"The global value of the paper packaging market is currently estimated at USD 6.2 billion and is forecast to grow to USD 7.7 billion by 2028 (CAGR 5.7 percent). Europe, with a share of USD 1.8 billion, remains the main driver of growth. This is an opportunity that Promar intends to take advantage of," THC said in the press release.
The investment in Promar is the second transaction completed by the fourth fund (THC IV). In June, the fund announced an investment in Med-Gastr, a gastroenterology centre, thus beginning the process of consolidating the domestic gastroenterology market.
THC IV continues the strategy of previous funds, investing in companies in the manufacturing, B2B services and healthcare sectors in exchange for a significant majority stake.
"Most investments will range from EUR 10 to 25 million, but the fund's foreign investors are also interested in co-investing in individual companies, which means that, together with debt financing, the fund can make investments in a single company of up to EUR 50 million," THC reported.
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