Wellspring Capital Management LLC, a New York-based private equity firm, announces the creation of a leading flexible packaging company through the merger of portfolio companies Prolamina Corp. and newly acquired Ampac Holdings LLC. Financial terms were not disclosed.

The combined company, which will be headquartered in Cincinnati, will have a strategic geographical footprint and enhanced product offering unparalleled in the industry. Ampac’s range of adhesive lamination, rotogravure printing capabilities, and innovative packaging solutions is highly complementary to Prolamina’s cost advantageous extrusion lamination and flexographic printing technology.  

John E. Morningstar, a managing partner of Wellspring who leads the firm’s activities in the packaging sector, said, “We are excited about the acquisition of Ampac and the combination with Prolamina to form a clear industry leader. The merger brings together two flexible packing industry leaders both known for innovation, customer service, and quality. Both companies, along with their respective management teams, have a proven track record of performance and will pursue a variety of new initiatives to further enhance their product offerings — adding value to their customers’ bottom line and increasing market opportunities.”

Matthew Harrison, a principal of Wellspring, said, “The acquisition of Ampac and its combination with Prolamina reflects the attractiveness of the global packaging industry. We believe there is increasing growth potential in the sector given the shift towards flexible packaging solutions driven by shifting consumer demands. We’ve been pleased to invest in this industry over the past several years and are excited to increase our participation through this expanded platform, which will serve broad and diverse markets.”

Greg Tucker, chief executive officer of Prolamina, will assume the role of chief executive officer for the merged company. Tucker said, “The combination of Prolamina and Ampac’s complementary capabilities and assets will enable the combined company to reach new levels of success, establishing it as a leader in the global packaging industry. I’m honored to lead a company with over 2000 dedicated team members and 16 facilities worldwide with exceptional manufacturing scale to meet the growing needs of our valued customers. We are committed to providing creative packaging solutions, industry-leading customer commitment and award-winning innovation in a diverse global marketplace.”

Alvarez & Marsal Capital Partners participated in the transaction as a direct investor in the combined business. Certain members of the management team have also invested additional capital in the transaction alongside Wellspring.  

William Blair acted as the lead financial advisor, and Paul, Weiss, Rifkind, Wharton & Garrison LLP and Jones Day acted as legal counsel to Wellspring.

Lincoln International acted as the lead financial advisor to Ampac Holdings LLC.

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