February 22, 2011 (Yonkers, NY): 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.
Source: Peco Pallet Inc.
