Subscribe to our free, weekly email newsletter!


PECO Pallet announces acquisition by The Pritzker Group

The acquisition provides PECO Pallet with substantial equity capital to fund the company's continued expansion throughout the U.S., Canada, and Mexico.
By Modern Materials Handling Staff
February 22, 2011

PECO Pallet Inc. announced today that the company has been acquired by The Pritzker Group, a private investment firm owned and controlled by J.B. Pritzker and Tony Pritzker. The acquisition provides PECO Pallet with substantial equity capital to fund the company’s continued expansion throughout the U.S., Canada, and Mexico. Terms of the deal were not disclosed.

“PECO has been hamstring in the past in terms of its growth potential,”  Chaille Brindley, publisher of Pallet Enterprise, told Modern. “It was only able to grow as much as cash generated by the business allowed. I understand that the new owners are looking for growth not immediate return on investment. Additionally, these owners have the funds to build for the future. This means that PECO will be in a better position to be a viable player for more rental business in the future.” 

The Pritzkers’ acquisition follows more than five years of significant growth for PECO Pallet, whose exceptional pallet quality, operational performance and service support have made the company a North American leader in pallet rental services. PECO’s signature red wood block pallets are used by an increasing number of market leaders in the consumer packaged goods industries and over 95% of top U.S. retailers. Customers who have tried other pallet pooling options, as well as those switching from whitewood pallets, have embraced the PECO Pallet rental model for its simplicity and overall value.

“PECO Pallet’s world-class customer service and leading edge logistics systems made the company a perfect fit for us,” said J.B. Pritzker, Managing Partner of The Pritzker Group. “Over the last several years, PECO’s management team has delivered a growth trajectory that has established the company as an industry leader. Our investment of new growth capital, plus the capital available under a new and substantially larger credit facility, will help drive key initiatives and accelerate PECO Pallet’s penetration of the rental market.”

David Lee, CEO of PECO Pallet, added, “PECO Pallet’s acquisition by The Pritzker Group will enable our company to continue expanding throughout North America. We have a great deal of respect for the Pritzkers and their team, who have an excellent reputation as high integrity, value-added, long-term partners. Together, we remain committed to maintaining PECO’s ‘best-in-class’ pallet pool and exceptional customer service.”

The transaction is subject to customary closing conditions and anticipated to close by the end of the first quarter of 2011.


PECO pallets now available in Mexico
PECO Pallet is now shipping its red wood block pallets to manufacturers and retailers in Mexico.
Pallets: Pallet pooling for the other guys
Upstart PECO Pallet brings competition to the pallet pooling market

 

Subscribe to Modern Materials Handling magazine

Subscribe today. It's FREE!
Find out what the world’s most innovative companies are doing to improve productivity in their plants and distribution centers.
Start your FREE subscription today!

Recent Entries

Alumni executives to mentor business students, serving on the Heller College of Business advisory board, and presenting at business forum lecture series.

The acquisition creates a one-stop source for materials handling needs, from pallet jacks to AGVs to maintenance management software.

Partnership enables enterprise-wide, multi-carrier shipping and manifesting software as an omni-channel solution.

Douglas Peterson brings more than 25 years of experience in industrial automation and electronics manufacturing.

Program is intended to address the projected demand for 200,000 trained technicians over the next decade.

Article Topics

News · Pallets · Load Unitization · All topics


© Copyright 2016 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA