Information on the Target

MAPfresh Holdings, operating under the brand StePac, is a premier provider of modified atmosphere packaging solutions for the fresh produce industry. Founded in 1992 and headquartered in Tefen, Israel, StePac has established a strong presence in the United States and Brazil. The company's innovative packaging technology, Xtend®, is specifically engineered for various vegetables, fruits, and herbs, ensuring extended shelf life while preserving freshness, taste, and nutritional value.

Since its acquisition by Nili Capital from Johnson Matthey in 2020, StePac has experienced remarkable growth, with revenues increasing by 75% and EBITDA more than doubling. This growth trajectory reflects the company's commitment to quality and customer service, maximizing produce shelf-life, operational efficiency, and promoting sustainability in packaging solutions.

Industry Overview in Israel

The fresh produce packaging industry in Israel is notable for its innovative approaches and technological advancements. Israel has earned a reputation as a global leader in agricultural technology, and this is reflected in its ability to develop advanced packaging solutions that extend the life of perishable goods.

With a strong emphasis on research and development, Israeli companies continuously seek to enhance the quality and longevity of their products. This has led to a competitive landscape where firms like StePac thrive, driven by increased demand for high-quality and sustainably packaged goods.

The growth in the fresh produce market is propelled by rising consumer awareness around food preservation, waste reduction, and nutritional benefits. As international trade in fresh produce grows, the necessity for efficient and reliable packaging solutions becomes even more critical.

Furthermore, as global trends pivot towards healthier eating and sustainable practices, the demand for modified atmosphere packaging is expected to increase, offering a significant opportunity for providers like StePac to expand their market reach.

The Rationale Behind the Deal

The sale of StePac to PPC Flexible Packaging is a strategic move that aligns both companies’ interests in the ever-expanding fresh produce and packaging markets. The partnership aims to leverage PPC's larger distribution capabilities and StePac's innovative product offerings to create new growth opportunities.

Nili Capital's successful management of StePac during its ownership period solidifies the rationale for the sale, demonstrating the value created and positioning the company for sustained success. The deal exemplifies the potential for StePac's innovative packaging technology to reach broader markets under the auspices of PPC.

Information about the Investor

PPC Flexible Packaging, backed by GTCR, is recognized as a leader in flexible packaging solutions. Headquartered in Buffalo Grove, Illinois, PPC specializes in the printing and converting of flexible films and other innovative packaging designs. Its reputation extends across various sectors, including healthcare, consumer goods, and specialty produce.

With extensive experience in cleanroom packaging and a commitment to innovation, PPC is well-positioned to support StePac's products and broaden their market reach. The synergy between PPC's distribution network and StePac's high-quality offerings is expected to drive significant growth moving forward.

View of Dealert

The acquisition of StePac by PPC presents a promising investment opportunity, leveraging established relationships, a deep understanding of the fresh produce sector, and a strong product pipeline. As noted by Nili Capital, the impressive growth metrics achieved by StePac during their ownership reflect the company’s operational excellence and strategic focus.

With PPC's backing, StePac is poised to expand its reach and maximize the potential of its innovative packaging solutions. The combination of PPC's resources and StePac’s market-leading products should lead to enhanced market penetration and increased revenues.

Given the rising demand for sustainable and effective food packaging solutions, this deal is likely to benefit both companies significantly, positioning them for substantial growth in the competitive fresh produce market.

In conclusion, while early in its lifecycle post-acquisition, StePac's partnership with PPC is strategically aligned for success, placing it on a trajectory for sustained growth through innovation and market expansion.

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