(Bloomberg) -- Five Star Holding Corp. is considering a sale that could value the closely held manufacturing group at more than $1.5 billion, according to people with knowledge of the matter.
The Houston-based company is working with an adviser to run an auction process, said the people, who asked not to be identified because they weren't authorized to speak publicly. The family-owned business, which runs facilities that make and recycle plastic bags, is expected to attract interest from private equity firms, the people said.
Five Star hasn't made a final decision on pursuing a sale and could elect to remain independent, the people said.
A representative for Five Star didn't respond to requests for comment.
A sale of Five Star would continue a trend of packaging groups selling to private equity firms. KPS Capital Partners agreed to buy a majority stake in Crown Holdings Inc.'s European packaging unit last April. In October, Carlyle Group Inc. announced a deal to buy a stake in Duravant that values the packaging company at more than $5 billion, according to data compiled by Bloomberg.
Five Star, which is made up of five closely aligned companies, hired Mike Ukropina as chief executive officer in 2018. Its brands include StarPak, Polytex, Superbag, Fresh Pak and Jumbo Bag.
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