Castle Harlan, Inc., the New York private equity firm, announced today that one of the investment funds it controls has sold Associated Packaging Technologies, Inc. (APT), a leading manufacturer of specialty packaging for frozen foods.

The buyer was Sonoco Products Company, one of the largest diversified global packaging companies. The all-cash purchase price was approximately $120 million, subject to certain possible adjustments. APT is North America’s largest manufacturer and supplier of crystallized polyethylene terephthalate (CPET) containers and is one of the largest suppliers of CPET packaging to the frozen food industry throughout the world.

Castle Harlan, founded in 1987, invests in controlling interests in the buyout and development of middle-market companies in North America and Europe. Its team of 19 investment professionals has completed 51 acquisitions since its inception with a total value in excess of $9.6 billion. Castle Harlan currently manages investment funds with equity commitments of $2.5 billion. The firm traces its roots to the start of the institutionalized private-equity business in the late 1960s.

Castle Harlan's current portfolio companies, which employ more than 37,500 people, include Ames True Temper, the manufacturer of lawn and garden tools and accessories; Baker & Taylor, the world’s largest distributor of books and entertainment products to libraries and retailers; Pretium Packaging LLC, one of the country’s leading manufacturers of custom-designed specialty plastic containers for the food, pharmaceutical, personal-care and household markets; and IDQ Holdings, Inc., the industry leader in Do-it-Yourself, branded products for servicing and repairing automotive air conditioners.

NEW YORK, December 19, 2000 - Castle Harlan, Inc., the New York merchant bank, announced today that it has acquired a controlling interest in Associated Packaging Enterprises, Inc. (APEI), a leading manufacturer of specialty packaging for frozen foods. Terms of the transaction were not disclosed.

Senior APEI management will retain a significant ownership stake in the company, Castle Harlan said.

APEI is one of the world's largest producers of crystallized polyethylene terephthalate (CPET) containers and is the largest supplier of CPET packaging to the frozen food industry throughout the world. APEI employs proprietary formulas and processes, which combine to create containers that are unparalleled in cost and performance. The company sells more than one billion trays per year.

APEI's primary customers in the frozen food industry include Nestle Frozen Foods, ConAgra Frozen Foods, Celentano and Luigino's, Inc. The packaging can be used in both conventional and microwave ovens and is recyclable.

"APEI has grown rapidly by delivering high quality, proprietary containers at competitive prices," said Marcel Fournier, managing director at Castle Harlan. "The company develops customized solutions to the unique packaging needs of its customers. Its blue-chip customer base and leading market share attest to the value of its products."

"Demographic trends support continued strong growth in the frozen food industry," Fournier said. "In addition, we are confident that APEI's experienced management team will maintain the company's outstanding position in its core business, and we expect to be able to develop important new growth opportunities."

The closely held, private company and is based in Jupiter, Florida, and has manufacturing and distribution facilities in Cambridge, Ontario, and Waynesville, North Carolina.

"We are very fortunate to have found a partner with the strengths and the experience of Castle Harlan," said Jon C. Buff, APEI's chief executive officer. "Castle Harlan is well known for the outstanding support it gives to its portfolio companies, and we look forward to a successful and rewarding relationship with the firm."

The investment in APEI will be made by Castle Harlan Partners III, L.P., a $630 million private equity investment fund organized and managed by Castle Harlan, Inc.

Since its founding in 1987, Castle Harlan has completed acquisitions exceeding $4.5 billion. Its portfolio companies currently include Universal Compression, a leading independent provider of natural gas compression equipment and services, and Marie Callender's Restaurant and Bakery, a chain of family restaurants best known for its freshly baked pies.

Other portfolio companies include Worldwide Flight Services, the leading global provider of ground services to the aviation industry; the Verdugt B.V. group, a leading producer and distributor of organic salts; AdobeAir, one of the nation's leading manufacturers of evaporative coolers and portable electric heaters, and Gravograph Industrie International, the world's leading maker and seller of machines, accessories and materials used in the engraving industry

Castle Harlan was founded by John K. Castle, an early pioneer of institutionalized private equity investing and the former president and chief executive officer of Donaldson, Lufkin & Jenrette, Inc., and by Leonard M. Harlan, founder and former chairman of the Harlan Company, a diversified real estate and corporate finance advisory firm.