Case Study: Custom Poly Bag

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  • Headquartered in Alliance, OH, Custom Poly Bag is a provider of flexible packaging and film products with more than a half century of experience. The Company focuses on plain and printed bags and roll stocks for a diverse set of mostly consumer industry clients, including the specialty bakery market.
  • Founded in 1969 by Lloyd Carlile and Don Prather, and managed by their sons Doug Prather and Phil Carlile, Custom Poly Bag specializes in small run jobs with high service, competitive pricing, and immediate turnarounds.
  • Doug and Phil were approached by PPC Flexible Packaging with an offer to buy the business. The owners sought an advisor to guide them through a sale process that involved PPC and potentially other interested buyers

EdgePoint’s Solution

EdgePoint led negotiations with Morgan Stanley Capital Partners, majority owner of PPC Flexible Packaging, driving a higher purchase price and better key deal terms. EdgePoint also took the leading role through the due diligence process, allowing management to remain focused on running the business during the global COVID-19 pandemic.

EdgePoint Exceeded the Owner’s Objectives:

  • The shareholders received a substantial premium to PPC’s initial offer given the excellent strategic fit and pre-emptive nature of the negotiations. PPC Flexible Packaging, specializing in the printing and converting of flexible films, bags, and pouches, served the bakery market but not in fresh baked breads. Custom Poly Bag’s leading product line was wicketed bags for the fresh bakery market, creating a strong hand-in-glove fit. PPC also lacked a presence in Ohio, Custom Poly’s core market.
  • The transaction provided liquidity for shareholders and enhanced financial and operational resources to support the Company’s recent growth.

     

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