Investors continue to pour money into the thermal packaging sector, as the white-shoe investment bank Goldman Sachs yesterday ponied up $140 million for an ownership share of TemperPack Technologies.
The news comes just days after thermal packaging solution provider Cold Chain Technologies LLC used its private equity backing to acquire Packaging Technology Group LLC, a vendor of sustainable, curbside-recyclable thermal packaging for the life sciences industry.
Richmond, Virginia-based TemperPack is a manufacturer of sustainable thermal insulation for cold chain packaging. The firm says its top product is its ClimaCell thermal liner, which is a sustainable alternative to expanded polystyrene—commonly known as Styrofoam—used for the shipment of perishable foods, pharmaceuticals, and other life science products. TemperPack says the material is non-toxic and curbside recyclable, helping to keep plastic waste out of the environment and reduce carbon emissions.
The equity financing round was led by the Sustainable Investing business within Goldman Sachs Asset Management, joined by existing TemperPack investors including Grosvenor Food & AgTech, Harbert Growth Partners, Tao Capital Partners, Revolution Growth, SJF Ventures, and Arborview Capital.
Following the move, the company said it will expand its capacity for protective materials technologies, grow its geographic footprint, and extend its customer reach.
“Goldman Sachs is committed to partnering with outstanding businesses that help drive sustainability,” Jeff Possick, managing director of Goldman Sachs Asset Management said in a release. “TemperPack has demonstrated an ability to lead in the cold chain materials space with much-needed sustainable solutions. We’re excited to invest in TemperPack’s growth to accelerate the development of technologies that disrupt the use of conventional single-use plastics.”
The cold storage sector has attracted a colossal amount of investment in recent months, led by a $1.7 billion round in January for the Michigan-based industry giant Lineage Logistics, coming just 10 months after the company raised another $1.9 billion.