The Canada Pension Plan Investment Board is recapitalizing an expanding packaging business.
The institutional investor has signed an agreement with the U.S.-based Berlin Packaging, a supplier of glass, plastic and metal containers with annual revenues of about US$2.5 billion. Private equity firm Oak Hill Capital Partners, which has been an investor in the packaging supplier since 2014, has also signed the refinancing agreement.
The funds raised by the agreement will be used to accelerate Berlin Packaging’s expansion of its digital and e-commerce capabilities. It will also be used to increase the pace of the company’s acquisitions in Africa, Asia, Europe and North and South America.
In a press release, Sam Blaichman, managing director of direct private equity at the CPPIB, said the organization was drawn to the packaging company’s approach to growth and innovation. “We look forward to supporting Berlin Packaging in its next phase of growth and international expansion alongside our equity partner, Oak Hill, as well as [William Hayes, chief executive office of Berlin Packaging] and the management team.”
The CPPIB is also joining the Ontario Municipal Employees Retirement System in a deal to purchase a combined 9.99 per cent ownership share in a U.S.-based reinsurance company.
The securities have been issued as part of a new series of securities from the Odyssey Group Holdings Inc. Under the terms of the deal, the organizations will each pay US$450 million to secure a 4.995 per cent share in the business.
In other investment news, the Alberta Investment Management Corp. is allocating an undisclosed amount of its managed assets to a private equity fund investing in organizations with infrastructure-like business models in Asia.
The Keppel-Pierfront Private Capital Fund makes allocations to infrastructure, energy, transportation, telecommunications, social infrastructure and logistics. The fund is jointly sponsored by two Singapore-based organizations: Clifford Capital Holdings and Keppel Capital, the asset management arm of Keppel Corporation Ltd. Both organizations have invested US$100 million in the fund, which is now US$455 million in size.
In a press release, Mark Yaniw, portfolio manager of infrastructure and renewable resources at the AIMCo, said the investment is part of a strategy to take advantage of opportunities in Asian infrastructure projects within the private credit space.