ProAmpac and Gelpac, a producer of multiwall paper and poly-woven packaging products, announced the signing of a definitive agreement under which ProAmpac will acquire Gelpac from an investor group led by NAMAKOR Holdings, including Groupe W Investissements and CDPQ.

The strategic acquisition of Gelpac’s production capabilities and high-performance paper and poly products will offer increased capacity and broaden ProAmpac’s product portfolio for customers across the US and Canada. Combining Gelpac and ProAmpac will allow the company to better serve customers in the high-growth food and beverage, agriculture, industrial and pharmaceutical end markets.

“Gelpac shares ProAmpac’s commitment to serve customers across the US and Canada with high-performance, sustainability-focused flexible packaging solutions,” said Greg Tucker, founder, vice chairman and CEO of ProAmpac. “Gelpac’s talented management team has a 20-year track record of working together to build this strong business, and I am delighted to welcome them to the ProAmpac family.”

“ProAmpac is the ideal partner for Gelpac’s continued growth and innovation,” said Alain Robillard, president and CEO of Gelpac. “ProAmpac’s platform and capabilities will provide significant benefit to our customers and key partners as we continue to offer exemplary packaging solutions in the market.”

Founded in 1956 and operating six facilities in the US and Canada, Gelpac serves a growing customer base with a broad portfolio of multiwall paper bag and polyethylene packaging solutions. The company has built a reputation for performance, a flexible business model with the ability to serve short- and long-run customers, turnkey capabilities and a deep commitment to innovation and sustainability. Gelpac will maintain its operational presence and head office in Quebec post-closing.

ProAmpac leverages its fiber and film-based materials science expertise to deliver greener flexible packaging products. Catering to industries such as food, pet care, healthcare, e-commerce, retail and industrial goods, ProAmpac operates 46 sites globally, with nearly 6,000 employees supplying more than 5,000 customers in 90 countries. The company is jointly owned by Pritzker Private Capital, management and other co-investors.

“Gelpac is a complementary addition to ProAmpac’s growing platform across Canada and the United States,” said Kaitlyn Desai, principal at Pritzker Private Capital. “Both businesses have built strong reputations as customer-focused innovators in sustainable, flexible packaging solutions.”

The transaction is subject to customary approvals and closing conditions and is expected to close in the coming weeks. Terms of the transaction were not disclosed.