ATLANTA - NationsBank Corp.'s leveraged capital group his participated in the leveraged buyout of Rex-Rosenlew International Inc., a plastic flexible packaging manufacturer, the Charlotte, N.C.-based bank announced Tuesday.
NationsBank declined to give terms of the transaction, except to say it provided a portion of the equity and subordinated debt for the buyout, advised the buyers, and structured and arranged the acquisition financing.
Rex-Rosenlew International was bought from its parent company, Finland-based W. Rosenlew Ltd., by an investment group that included NationsBank's leveraged capital group affiliate and Rex-Rosenlew's senior management.
Industrial Sacks, Pallet Wrappings
Rex-Rosenlew International specializes in making heavy-duty industrial sacks and stretch film for pallet wrapping. It operates plants in Thomasville, N.C., and Teterboro, N.J. W. Rosenlew Ltd. is one of Europe's leading plastic packaging companies.
NationsBank's leveraged buyout unit supplies equity and subordinated debt for buyouts, recapitalizations, acquisitions, and venture capital transactions. It contains two divisions.
One focuses on mezzanine and private equities financing, making subordinated debt investments of $3 million to $15 million and equity investments of $1 million to $ 10 million.
The other invests venture capital, from $1 million to $5 million, generally in younger companies.
Participation in Magnavox Deal
The mezzanine division engineered the Rex-Rosenlew leveraged buyout.
The venture capital division recently invested $2.5 million in a $145 million management buyout of Magnavox Electronics Systems Co., Dallas.
Magnavox Electronics supplies electronic communications equipment to military and private companies.