SAN FRANCISCO (Reuters) - Private equity firm Genstar Capital is nearing a deal to acquire Tekni-Plex, a U.S. manufacturer of medical packaging and tubing, from American Securities for roughly $1.5 billion, including debt, according to people familiar with the matter.
If the sale is successful, it would come at a time when the pharmaceutical and healthcare sector is forecast to be the fastest growing packaging end market over the next five years, due to partly to an aging population and government safety regulations.
A deal could be announced as soon as next week, according to the sources, who asked not to be named because the matter is private.
Representatives for Genstar, American Securities and Tekni-Plex did not immediately respond to a request for comment.
American Securities acquired Pennsylvania-based Tekni-Plex from Oaktree Capital Management in December 2013 for an undisclosed sum. At the time, Reuters reported the deal was worth up to $800 million
Packaging-related buyout transactions total $5.7 billion so far in 2017, having slowed to $15.9 billion last year from $26.6 billion in 2015, according to Thomson Reuters data.
In May, U.S. buyout firm Leonard Green & Partners LP acquired Charter NEX, a manufacturer of specialty films for the food and healthcare industries, for $1.5 billion.
Reporting by Greg Roumeliotis and Andrew Berlin in New York; Editing by David Gregorio