YONKERS, N.Y. - Wednesday, February 23rd 2011 [ME NewsWire]
(BUSINESS WIRE)-- PECO Pallet Inc. announced today that the company has been acquired by The Pritzker Group, a private investment firm owned and controlled by J.B. Pritzker and Tony Pritzker. The acquisition provides PECO Pallet with substantial equity capital to fund the company’s continued expansion throughout the U.S., Canada, and Mexico. Terms of the deal were not disclosed.
The Pritzkers’ acquisition follows more than five years of significant growth for PECO Pallet, whose exceptional pallet quality, operational performance and service support have made the company a North American leader in pallet rental services. PECO’s signature red wood block pallets are used by an increasing number of market leaders in the consumer packaged goods industries and over 95% of top U.S. retailers. Customers who have tried other pallet pooling options, as well as those switching from whitewood pallets, have embraced the PECO Pallet rental model for its simplicity and overall value.
“PECO Pallet’s world-class customer service and leading edge logistics systems made the company a perfect fit for us,” said J.B. Pritzker, Managing Partner of The Pritzker Group. “Over the last several years, PECO’s management team has delivered a growth trajectory that has established the company as an industry leader. Our investment of new growth capital, plus the capital available under a new and substantially larger credit facility, will help drive key initiatives and accelerate PECO Pallet’s penetration of the rental market.”
David Lee, CEO of PECO Pallet, added, “PECO Pallet’s acquisition by The Pritzker Group will enable our company to continue expanding throughout North America. We have a great deal of respect for the Pritzkers and their team, who have an excellent reputation as high integrity, value-added, long-term partners. Together, we remain committed to maintaining PECO’s ‘best-in-class’ pallet pool and exceptional customer service.”
The transaction is subject to customary closing conditions and anticipated to close by the end of the first quarter of 2011.
About PECO Pallet:
PECO Pallet is a North American leader in pallet rental services. Over 95% of U.S. grocery, warehouse, club and discount retailers currently utilize PECO’s signature red block pallets. PECO Pallet’s tremendous growth over the last decade reflects the company’s overall commitment to exceptional quality and genuine passion for customer service excellence. PECO is headquartered in New York and maintains over 300 service centers and manufacturing plants throughout the U.S., Canada, and Mexico. For more information about PECO Pallet, visit www.pecopallet.com.
About The Pritzker Group:
The Pritzker Group is a private investment firm representing Pritzker family interests. Its reputation is built on strong management partnerships and a focus on excellence. Led by Tony Pritzker and J.B. Pritzker, the firm has completed more than 50 transactions, focusing on high-quality, mature, and profitable businesses with value-added products and services, stable-to-high growth profiles, and strong market positions. For more information, please visit www.pritzkergroup.com.
Contacts
PECO Pallet, Inc.
Tom Kuczmarski, 914-376-5185 (CFO)
tkuczmarski@pecopallet.com
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