Jul 15 2009
Sun Capital Partners, Inc., a leading private investment firm specializing in leveraged buyouts and investments in market-leading companies, today announced that its affiliate, PaperWorks Industries, Inc. ("PaperWorks") will merge with The Specialized Packaging Group ("SPG") to form the third largest integrated coated-recycled board company in the U.S. Terms of the transaction were not disclosed.
PaperWorks was formed in September 2008 as a vehicle to purchase two paper mills located in Philadelphia, PA and Wabash, IN, which together produce about 300,000 tons of 100 percent clay-coated, recycled paperboard annually. PaperWorks serves such industries as frozen foods, household goods, oral care and beverages.
The Specialized Packaging Group operates five facilities in North America, including London, Ontario, Baldwinsville, NY, Greensboro, NC, Kansas City, KS and Lenexa, KS. The Company targets medium to long paperboard packaging runs for high-end graphically complex products in the following consumer products segments: dry laundry detergent, oral care, surface care, personal care, home storage and pet care.
"The paper and packaging industry is currently in transition, and we believe that a well positioned competitor with strong capitalization will be successful in the current environment," said Brian McGee, Vice President, Sun Capital Partners. "The strategic objective in building an integrated packaging company was not only to grow organically but also through further add-on acquisitions. The merger with The Specialized Packaging Group is an important next step toward that goal."
Sun Capital brings extensive operational experience and expertise to the paper and packaging industry, having previously developed companies in this sector, including: Exopack Holding, a North American flexible packaging converter and provider of paper and plastic packaging solutions for various industries; and VeriPlast Solutions, a manufacturer of a large range of packaging products for use in the food, drink, health and home and personal care sectors.
Sun Capital puts strong emphasis on in-house operational expertise and partners closely with management teams in their efforts to grow the mid-sized companies its affiliates acquire and to improve their operations. Sun Capital has a team of 43 operations experts - over 25 percent of its entire staff - who are solely focused on supporting, mentoring, and adding value to portfolio companies.