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, 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,” Starr said.

CapX Partners provides equipment finance and term debt solutions to middle market companies seeking growth and liquidity. Founded in 1999, CapX invests $1 million to $20 million across manufacturing, distribution, technology, energy and healthcare sectors throughout the U.S. and Canada.