Butterfly Equity, the Los Angeles-based private equity firm focused on the food and beverage sector, announced it has completed its acquisition of ePac Holdings, the company behind ePac Flexible Packaging, from an investor consortium that included Amcor and Indevco North America. Financial terms were not disclosed.
The deal positions Butterfly to enter the packaging segment of the food value chain with what it called its first platform investment in the category, while giving ePac additional backing to accelerate its growth strategy in digitally printed flexible packaging—an increasingly important format for consumer brands seeking faster turnaround times, more customization, and shorter production runs.
Founded in 2016, ePac has built a networked model for flexible packaging production geared toward innovative, fast-growing consumer packaged goods customers, with an emphasis on food end markets. The company operates 14 facilities across the U.S. and Canada and markets a tech-enabled approach designed to standardize capabilities across its footprint. A key piece of that strategy is ePacONE, the company’s proprietary technology platform that supports “order-to-demand” production and is intended to allow brands to produce varying order sizes across any facility in the network.
ePac said its platform supports automated quoting, consistent quality across a wide range of product specifications, and quick service times—features that can be particularly valuable for emerging brands and high-growth categories that want to iterate quickly on packaging formats, product launches, and promotional runs.
Butterfly said ePac will continue to be led by its incumbent management team, including CEO and co-founder Virag Patel, and that the leadership group has retained a significant ownership stake in the business.
In announcing the transaction, Butterfly emphasized the strategic overlap between ePac’s customer base and Butterfly’s specialization in food end markets. The firm described packaging as a critical component of the food value chain and said its sector connectivity and operating approach can support ePac’s expansion while reinforcing customer experience and service levels.
The parties also highlighted continued investment in technology as a central part of the partnership, pointing to ePacONE and other next-generation platforms the company expects to evaluate and deploy as it scales.
Butterfly was advised by Kirkland & Ellis on legal matters and William Blair on financial matters. Baird served as financial advisor to ePac, and Greenberg Traurig acted as legal counsel to ePac.
ePac describes itself as the largest networked flexible packaging provider, offering digital printing and a full complement of films, including sustainable options. The company is headquartered in San Diego, California. Butterfly, founded in 2016, invests exclusively in the food sector and said it has built a portfolio representing approximately $9 billion in enterprise value across a range of category-leading brands and platforms.
KEY QUOTES
“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 & beverage ecosystem. Together, we will continue to evaluate and deploy next-generation technologies and platforms, like ePacONE, to deliver unmatched value and brand growth for our customers, regardless of their size or scale.”
Virag Patel, CEO and Co-Founder, 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. ePac has already established itself as a market leader, and together we aim to build on that success.”
Vishal Patel, Partner and Head of Investment Team, Butterfly
“We have been deeply impressed with ePac’s specialization and their ability to lead the market. The Company’s visionary management team has demonstrated a strong track record of execution, and we believe the combination of seamless technology, speed of service and an obsessive focus on the customer experience has created a scalable foundation for continued growth in the digitally printed packaging category.”
Eric Tommarello, Managing Director, Butterfly
