The Industry and Company
A market-leading manufacturer of consumer packaging (the “Company”) holds a strong market position across its key segments and is currently backed by a private equity sponsor. The Company operates in a stable industry that has benefited from COVID-19 tailwinds and counter-cyclicality, translating to a surge in year-to-date demand.
The Company sought financing for the establishment of two new manufacturing lines at two of the Company’s facilities. These manufacturing lines support the production of a newer form of packaging that uses less material, is cheaper to produce, and generates superior margins. Furthermore, the Company’s key customers are increasingly utilizing the newer packaging.
Atalaya provided ~$25M in lease financing to the Company, enabling it to increase supply capacity, improve margins, and participate in an industry shift. The Company can now meet its consumer demand and work toward execution of its long-term client retention strategy. Atalaya sees the potential for further transactions with the private-equity sponsor’s portfolio companies in the future as well.