Duro Bag is a manufacturer and marketer of retail and luxury paper bags, for food service, grocery, wholesale-distribution and other industries. The company produces grocery bags, handle bags, compostable paper lawn and leaf bags, and various specialty bags, including lunch bags, pharmacy bags, bread bags, as well as a range of premium paper shopping bags for luxury retailers in North America. Duro Bag is headquartered near Cincinnati in Florence, KY (www.durobag.com).
Hilex Poly is the nation’s largest manufacturer of plastic shopping bags, produce bags and related bags and films. Hilex has 10 manufacturing facilities across the U.S, producing over 35 billion bags annually for customers including Wal-Mart, Kroger, Publix, K-Mart, Foot Locker and Dollar General. Hilex operates the only closed-loop bag recycling operation in the U.S. and has the ability to take previously used bags, process them, blend them with virgin resin, and make new bags with a significantly higher percentage of post-consumer content than its competitors. The company is headquartered in Hartsville, SC (www.hilexpoly.com).
“Completing acquisitions was a key value driver we had outlined when we invested in Hilex,” said Alex Washington, a managing director at Wind Point. “The Duro Bag acquisition is a great opportunity to grow our product offerings, providing better value for our customers.”
Wind Point acquired Hilex Poly in 2012, in partnership with CEO Stan Bikulege. Prior to joining Hilex, Mr. Bikulege served as the CEO of Exopack, a paper & plastic converting company, and Renaissance Mark, a label company.
“The acquisition of Duro Bag will enable us to expand our portfolio of 100 percent recyclable products to meet customer demands as well as broaden our reach to other market segments,” said Mr. Bikulege. “Hilex continues to focus on developing products that are recyclable, sustainable and environmentally friendly. We are pleased and excited to welcome the Duro Bag family into Hilex.”
Wind Point Partners invests from $20 million to $70 million of equity in companies with revenues from $100 million to $500 million and EBITDAs of at least $8 million. Industries of interest include business services, consumer products, healthcare and industrial products. Wind Point Partners was founded in 1984 and is based in Chicago (www.wppartners.com).
2014 PEPD • Private Equity’s Leading News Magazine • 7-8-14