Wheatsheaf Group invests in TemperPack® Technologies
Wheatsheaf Group has invested in TemperPack® Technologies, Inc., the lead manufacturer of sustainable thermal insulation for home deliveries of perishable foods and temperature-sensitive medicines. Wheatsheaf led an investment round totalling $31.3 million which also included follow on investments by existing shareholders.
TemperPack has seen significant growth over the last 18 months, accelerated by stay-at-home orders which have made home deliveries of meal kits, produce, and prepared meals more mainstream. In addition to bringing on new customers, existing customers have increased their orders, and TemperPack has more than doubled the size of its workforce since the end of 2018.
At the same time, life sciences companies shipping insulin, diagnostic tests kits, and biologic medicines are moving away from expanded polystyrene foam (EPS), also known as Styrofoam®. EPS has been banned by dozens of localities in the US for its harmful effects on the environment.
Commenting on the transaction, Katrin Burt, Executive Director at Wheatsheaf Group: “TemperPack is perfectly positioned for long-term growth thanks to a product that delivers a comparable performance to established alternatives but with the added benefit of being sustainable. There is significant opportunity within its core food and life sciences markets in the US and globally, and we expect the ClimaCell® technology will allow it to compete in other markets where Styrofoam is the incumbent material."
The new funding will enable TemperPack to expand manufacturing of its patented ClimaCell® thermal liners. ClimaCell liners provide similar levels of thermal protection as EPS. Unlike EPS, ClimaCell® is plant-based, 100% curbside recyclable, and reduces carbon emissions. The additional manufacturing capacity will enable ClimaCell to increase market share in the food and life sciences markets and positions TemperPack for future growth in new regions and applications.
"TemperPack is perfectly positioned for long-term growth thanks to a product that delivers a comparable performance to established alternatives but with the added benefit of being sustainable."
Executive Director, Wheatsheaf Group
Executive Director, Wheatsheaf Group
“We’ve been seeing increased demand from companies across a range of categories in the food space and from leading life sciences companies proactively breaking away from Styrofoam. The time was right for us to look for partners to allow us to build and accelerate our growth,” said Brian Powers, TemperPack CEO.
With this round of funding, TemperPack has now raised over $78MM. The company has 200 employees and manufacturing facilities in Richmond, Virginia, and Las Vegas, Nevada. TemperPack estimates that, by choosing ClimaCell over EPS, its customers have avoided the creation of over 18 million kilograms of carbon missions and eliminated the need for over 220,000 cubic meters of plastic waste since 2018.
“The global pandemic swiftly accelerated the volume of home deliveries and will likely contribute to lasting changes in e-commerce behavior as well as increased interest in sustainability as trash bins overflow with non-recyclable shipping materials. We are proud to reinvest in TemperPack as they lead the movement from toxic, plastic packaging to sustainable alternatives,” said Todd Klein, Partner at Revolution Growth.
The company was founded in 2015 by CEO Brian Powers, Chief Product Officer James McGoff, and Chief Technology Officer Charles Vincent. TemperPack currently works with food delivery and healthcare companies including HelloFresh and Diplomat Specialty Pharmacy.