Butterfly acquires ePac Packaging

Butterfly Equity has completed its acquisition of ePac Holdings from an investor consortium including Amcor and Indevco North America, marking the Los Angeles-based private equity firm's first platform investment in the packaging market.

ePac, founded in 2016, specializes in digitally printed flexible packaging for consumer-packaged goods customers, with a focus on food end markets. The company operates 14 facilities throughout the US and Canada, built around its proprietary ePacONE technology platform, which enables order-to-demand production across its entire network.

The incumbent leadership team, led by CEO and co-founder Virag Patel, will continue to operate ePac and has retained a significant ownership interest in the business.

'Over the past decade, ePac has redefined the packaging model by putting the most advanced technology in the hands of the world's most innovative brands. By partnering with Butterfly, we enter a new phase of acceleration. This partnership allows us to continue disrupting the industry while leveraging Butterfly's connectivity throughout the food and beverage ecosystem,' stated Virag Patel, CEO of ePac.

'We're thrilled to partner with the ePac team as Butterfly's first platform investment into the packaging market, a critical component of the food value chain. Our deep and specialized expertise in food end markets will enable ePac's growth while reinforcing its commitment to outstanding customer service for the leaders and innovators in food and other categories,' commented Vishal Patel, partner and head of investment team at Butterfly.

In April 2021, Amcor, an Australian-American, UK-domiciled global consumer packaging company, confirmed a strategic investment of up to USD 15 million in ePac Flexible Packaging, including a minority ownership interest in the company and funding for one or more ePac sites.

A year later, Amcor made a further strategic investment of up to USD 45 million in ePac Flexible Packaging to increase its minority shareholding in ePac Holdings.

Most recently, Pac Flexible Packaging confirmed major expansion and technology investments across its European network. Significant upgrades are underway at ePac facilities in Lyon, Innsbruck, Silverstone, and Poland. 

Butterfly was advised by Kirkland & Ellis on legal matters and William Blair on financial matters. Baird acted as financial advisor to ePac, with Greenberg Traurig serving as legal counsel. Terms of the transaction were not disclosed.