Pacon Corporation – a supplier of education and arts & crafts products – has acquired the assets and trade names of The Chenille Kraft Company. Pacon has been a portfolio company of Mason Wells since November 2011.
The Chenille Kraft Company serves the education market with a range of arts & crafts products, including WonderFoam, Creativity Street, Chenille Stems, Felt Sheets, and other accessories. The company was founded in 1930 and is headquartered north of Chicago in Gurnee, IL (www.chenillekraft.com). Chenille Kraft’s operations in Gurnee will be moved to Pacon’s facilities in Appleton, WI.
Pacon, acquired by Mason Wells from The Van Hoof Companies, is a provider of education and arts & crafts products marketed through retailers, educational distributors, and wholesalers. Pacon sells its products into the school and art markets. In the school market, Pacon is a converter and marketer of consumable school supplies sold under numerous brands, including Peacock, Tru-Ray, and Fadeless to the K-6 market. In the art market, Pacon is a converter and marketer of art papers sold primarily under the Strathmore Artist Papers brand to student, professional, and recreational artists. Pacon has facilities in Appleton (headquarters) and Neenah, WI; Barrie, ON; and Shropshire, UK. Pacon was founded in 1951 and is led by Jim Schmitz, President and CEO (www.pacon.com) (www.strathmoreartist.com).
According to Mason Wells, the buy of Chenille Kraft strengthens Pacon’s ability to be a single-source supplier for educational aids, paper products, and arts & crafts. “Mason Wells is pleased to support the Pacon management team in its acquisition of Chenille Kraft,” said Chris Pummill, a Vice President at Mason Wells. “The acquisition of Chenille Kraft’s assets enhances Pacon’s growth through adjacent arts & crafts categories sold to new and existing customers.”
Mason Wells makes investments in Midwest-based companies with revenues of $25 million to $300 million and EBITDAs of at least $5 million. Sectors of interest include consumer packaged goods, packaging materials & converting, outsourced business services, and engineered products & services. The firm is currently investing through Mason Wells Buyout Fund III, a $525 million fund. Mason Wells was founded in 1982 and is based in Milwaukee (www.masonwells.com).
Debt financing for the transaction was provided by members of Pacon’s existing lender group, which is led by US Bank (www.usbank.com). Quarles & Brady (www.quarles.com) served as legal counsel to Pacon Corporation.
© 2016 PEPD • Private Equity’s Leading News Magazine • 1-14-16
