Molded Container Corporation
Recognized west coast plastics injection and blow molder of rigid plastic food containers and various advertising specialty products such as yo-yos, stadium cups and Frisbees. Plastic container products are distributed throughout the Western United States while the advertising specialty products, known as Humphrey, are sold nationwide through multi-line representatives.
In August 1991, a group of investors with a new management team completed a 100% leveraged buyout of the Company from an owner/operator who had run it for 20 years.
Over the course of ownership, the Company increased revenue to $18.5 million and EBITDA to $1.5 million in 1998. Management believed selling the business to a strategic buyer at that time was not in its best interests and instead recapitalized the Company. Outside investors, including a Principal, believed otherwise choosing not to participate and were repaid in full their principal commitment while continuing to hold warrants representing approximately 10% of the Company. Realized annual IRR 10%.