US-based Pretium manufactures blow moulded packing for the pharmaceutical, food and personal care sectors, while Novapak caters for the specialty chemical, personal care, healthcare, food, beverage industries.

Keith Harbison, founder and owner of Pretium, will remain as a “significant shareholder” in the combined businesses and will also become a board member, said the company.

Castle Harlan said the combined company, which will carry the Pretium name, will have annual sales of approximately $240 million and 14 manufacturing plants in the United States and Canada serving more than 500 customers. The deal is expected to be completed in Q1 2010.

“There is very little overlap in customers between the two companies, which will enable Pretium to offer a broader range of products and services to an existing customer base,” said Castle Harlan senior managing director William Pruellage.

“In addition, we see abundant opportunities for the combined company to expand its customer base geographically, and we believe management is energized to do that.”

Pretium’s President and CEO George Abd said both packaging outfits had previously focused on small to medium volume, custom bottle applications – with much of their growth coming in the PET segment.

While Petrium had invested in one-step wide-mouth PET technology, Novapak had concentrated on two-step narrow-neck PET, extrusion blow moulding and injection blow moulding in HDPE and PP, he added.