CapX Wraps Up Equipment Financing for Food Packaging Company

By: Eric D. Starr :: March 12, 2019

CapX Partners provided $9.8 million in equipment financing to a leading packaging company located in Montreal, Quebec. The company has developed new sustainable, rigid and flexible packaging for the food industry to meet changing consumer demands. To enable production to start, the company required funding for new plastic extrusion and thermoforming lines and reached out to CapX via an intermediary.

“CapX has considerable experience with companies in the consistently changing food space as well as with the related packaging industry,” said Eric Starr, a partner at CapX Partners. “We were able to understand the growth benefits of obtaining and installing new manufacturing technologies and proposed a comprehensive lease finance package that meets the company’s needs to start 2019 production.”

A foreign ownership structure combined with complex financial statements made the stand-alone financing challenging to banks and traditional capital providers. The Canadian operating company is a subsidiary of a European parent with various levels of ownership and corresponding large corporate financial profile. CapX, via its Accord ABL unit in Montreal, was able to combine in-person diligence with in-depth financial analysis to offer a financing commitment.

“The packaging industry is one that sees consistent innovation and requires capital investment to execute new design. CapX is always attracted to companies that have a sound strategy, talented management and desire capital for growth,” stated Eric Starr.

Eric D. Starr, Partner

As a Partner with CapX Partners, Eric is responsible for developing technology-enabled solutions to drive scale and operational efficiency. His areas of focus include origination, underwriting, portfolio management, and finance. As a business developer, Eric's industry emphasis is on healthcare, energy, technology, and manufacturing.

Prior to joining CapX in 2008, Eric worked as a hedge fund manager and was a member of the risk committee at Forest Investment Management. Previous to...