Mediapak Corporation Acquires Alpha Enterprises and Joyce Molding for a Total of $299 Million

Business Wire, August 4, 1999

NEW YORK--(BUSINESS WIRE)--August 4, 1999--

-- Acquisitions Sponsored by Palladium Equity Partners, L.L.C. Create the Largest Audio, Video and Software Media Packaging Company in the U.S. --

Mediapak Corporation, the world's largest manufacturer of compact disc jewel cases, announced today that it has acquired Alpha Enterprises, Inc. and Joyce Molding Corp. in two separate transactions totaling $299 million. These acquisitions expand Mediapak's capacity and product lines to create the largest supplier of injection-molded media packaging products for compact discs, VHS video cassettes and DVD discs in North America, with a substantial market position in Europe.

Based in Atlanta, Georgia, Mediapak was created in 1999 by Palladium Equity Partners, L.L.C., a private investment firm, to acquire Atlanta Precision Molding Co. and Europe Precision Molding, BV from Mitsubishi Corporation.

A total of $92 million of equity capital has been invested in Mediapak to effect this build-up in the packaging industry. Additional investors include Fleet Equity Partners, J.P. Morgan Capital and First Dominion Capital. To complete these transactions Palladium raised a total of $285 million of senior debt in a syndication led by Fleet Bank and Deutsche Bank.

Michael Sims, President and Chief Executive Officer of Mediapak, said, "The acquisition of Alpha and Joyce brings numerous strengths to Mediapak - excellent technology and product development skills, the capacity necessary to meet the needs of a growing industry, advantageous geographic location both domestically and in Europe, and the leading position in the fast-growing DVD market.

This is a tremendous opportunity to create one-stop shopping for our customers, many of whom are the major multinational content providers and distributors, such as Sony, Disney, Warner, Polygram, Dreamworks, and Blockbuster Entertainment. It will ensure our ability to accommodate their future needs in the rapidly evolving media industry," he concluded.

Christy S. Sadler, a Palladium partner, said, "This transaction furthers the transformation of the media packaging industry, which had traditionally been the domain of numerous small and often insufficiently-capitalized companies. By creating a single, large player, and developing its combined capabilities, we expect to create a company of significant strength and value."

The combined company has pro forma revenues of approximately $250 million. Mediapak headquarters will remain in Atlanta, and the combined company will have a total of eight manufacturing facilities in U.S. and Europe.

Palladium, based in New York, is a private investment firm that seeks superior long-term returns by providing both financial and operating expertise to the investments in its portfolio. Palladium focuses primarily on companies in basic industries and specializes in businesses undergoing significant and often complex change, or that are underperforming due to operational difficulties. Formed in 1997, Palladium brings together seasoned professionals who collectively have directed investments of over $2 billion of equity capital in more than 40 companies.