Emerald Lake Capital Management Facilitates Successful Exit with Inno-Pak Sale

Recently, Emerald Lake Capital Management (Emerald Lake) has made headlines with the announcement of its successful sale of Inno-Pak, LLC, a prominent player in eco-friendly food packaging solutions. This strategic move marks a significant step for Emerald Lake, a private equity firm focusing on capital-efficient businesses, predominantly in the industrials and services sectors.

Inno-Pak, known for its innovative designs, manufacturing processes, and a vast portfolio of over 170 design and utility patents, specializes in offering diverse packaging solutions that cater to prepared and takeout foods. The company is headquartered in Delaware, Ohio, and stands out for its ability to adapt to varying customer demands with products made from multiple materials, including paperboard and rigid plastics.

Since aligning with Emerald Lake in 2020, Inno-Pak has achieved remarkable milestones in product innovation and business expansion. The company has more than doubled its patent portfolio during this period and has made significant investments in enhancing its manufacturing capabilities. In 2023, Inno-Pak launched a state-of-the-art domestic production facility in Ohio, complemented by an expanded distribution center. Moreover, a new facility catering to West Coast operations opened in Nevada in 2022.

Inno-Pak's growth strategy also included strategically acquiring companies to broaden its product offerings and geographical reach. Noteworthy acquisitions include Stalk Market in 2022 and both Finishing Services Inc. and Albany Packaging in 2023. These actions have notably increased their manufacturing capabilities and strengthened their position in the market.

Dan Lukas, Managing Partner of Emerald Lake, expressed pride in Inno-Pak's growth achievements, highlighting their enhanced ability to deliver eco-conscious packaging solutions amidst shifting consumer preferences towards prepared food from supermarkets and mobile delivery services. The collaboration increased Inno-Pak's capacity in product development, distribution, and sales.

Chris Sanzone, CEO of Inno-Pak, echoed Dan's sentiments, noting that the collaboration with Emerald Lake was instrumental in their thriving growth over five years. Thanks to their shared focus on innovation and adaptability, they are eager to begin a new partnership with Handgards, a company that specializes in distributing food service products.

The acquisition is seen as a promising opportunity for Inno-Pak to leverage Handgards’ industry expertise to accelerate its growth trajectory further. The financial terms of the transaction have remained undisclosed, but industry experts view this sale as a strategic alignment of strengths.

Emerald Lake Capital Management, founded in 2018, prides itself on building trusting relationships with management teams to unlock growth potential in sustainable businesses. The firm currently manages approximately $1.4 billion in equity capital, showcasing its commitment to endeavors that align with evolving market expectations.

For Inno-Pak, the future looks bright as it continues to strengthen its position as a leader in sustainable packaging solutions. With a strong focus on recyclable, reusable, and compostable packaging, Inno-Pak remains dedicated to meeting the needs of its customers and contributing positively to the environment.

As businesses continue to prioritize sustainability, partnerships like this highlight the importance of innovation and adaptability in achieving long-term success. Inno-Pak and Handgards’ collaboration may very well set a precedent for future endeavors in the eco-friendly packaging industry.