TemperPack, a Richmond company that specializes in environmentally friendly packaging materials for temperature-sensitive products, said Tuesday it has closed its acquisition of Michigan’s KTM Industries.
Terms of the transaction were not disclosed. The deal was first announced in August, and it took a little more than a month to close.
The Richmond company said the purchase will bring together two leaders in the production of eco-friendly materials used in cold-chain and nonthermal protective packaging. KTM is behind a material called Green Cell Foam, which is made from U.S.-grown corn. It is not recyclable but can dissolve in water, be composted, burned or even used as plant food. TemperPack’s flagship product, called ClimaCell, is an insulation material that replaces Styrofoam coolers for use in shipping food and life sciences products. Clients include HelloFresh and UPS Healthcare.
The combined company now has more than 700 employees in four U.S. locations: Holt, Michigan; Las Vegas; Reno, Nevada; and Richmond.
Bob Becker, TemperPack’s CEO and chairman, said in a statement the close of the deal will allow the two companies to begin the process of integration. “Together, we are committed to bringing the market protective materials that are better for people and the planet,” Beckler said.
The deal comes on the heels of TemperPack securing $140 million in equity financing in March from some big investment names, including Goldman Sachs Asset Management, Steve Case’s Revolution Growth and Tao Capital Partners. The round stretched the company’s lifetime funding to $250 million since its 2015 founding.
