Deutsche to lead new loan financing for Kohlberg purchase of Packaging Dynamics

By Sara Rosenberg

New York, Feb. 27 - Deutsche Bank has agreed to act as the lead bank on the new credit facility that will be used to fund Kohlberg & Co.'s acquisition of Packaging Dynamics Corp., according to a market source.

Under the terms of the acquisition agreement, each outstanding share of Packaging Dynamics' common stock will be purchased for $14.00 in cash by a wholly owned subsidiary of Kohlberg affiliate Thilmany LLC.

The transaction is valued at about $268 million, including the assumption or refinancing of the company's outstanding indebtedness as of Dec. 31.

The combined Packaging Dynamics and Thilmany business will have annual sales of about $750 million, making it one of the 10 largest flexible packaging companies in the United States.

Closing on the acquisition is expected to be completed during the second quarter, subject to various customary conditions, including approval of the transaction by the company's stockholders and the expiration of the applicable waiting period under the Hart-Scott-Rodino Act.

Packaging Dynamics is based in Chicago, while Thilmany is based in Kaukauna, Wis.

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