Advent International has agreed to acquire Fort Dearborn Company, a supplier of labels used in the consumer goods industry, from KRG Capital Partners. Fort Dearborn’s management team will retain a minority stake in the company and continue to lead the business following the completion of the transaction.
Fort Dearborn, acquired by KRG through the firm’s fifth fund in August 2010, is a supplier of labels for the beverage, food, household products, paint and coatings, personal care, private label/retail and spirits markets. The company provides cut & stack, pressure sensitive, roll-fed and shrink-sleeve labels across multiple print technologies including digital, flexographic, offset lithographic and rotogravure. Fort Dearborn, led by CEO Jeff Brezek, is headquartered in the Chicago suburb of Elk Grove and has approximately 1,675 employees in fifteen production locations in the US and Canada (www.fortdearborn.com).
During KRG’s ownership, Fort Dearborn completed four add-on acquisitions: SleeveCo, a maker of shrink, stretch, and super-stretch sleeve labels was acquired in June 2016; Core Label, a maker of roll-fed labels used in the beverage market was acquired in June 2015; AC Label, a maker of labels for craft beer, liquor and food bottles was acquired in June 2013; and in March 2013 the paint & coating labels business of Fetter’s was acquired.
KRG Capital specializes in acquiring and recapitalizing unique and profitable middle-market companies that have from $10 million to $100 million or more of EBITDA. Founded in 1996, KRG has $4.5 billion of capital under management and is based in Denver (www.krgcapital.com). The sale of Fort Dearborn is led by Chris Lane, a managing director at KRG, and represents the seventh exit for KRG’s Fund IV.
According to Advent, Fort Dearborn is the third-largest supplier of prime labels in North America. “Fort Dearborn is a leading player in the large, fragmented labels market with a differentiated culture and customer service model,” said Kevin Feinblum, a Managing Director at Advent. “The company has completed four acquisitions since 2013, and we believe it is well- positioned to add further capabilities to better serve its customers. We look forward to working with the company’s management team to pursue these growth opportunities.”
Advent International invests in companies active in business and financial services; healthcare; industrial; retail, consumer and leisure; and technology, media and telecom. The firm is owned and operated by 45 partners and governed by a group of 14 managing partners. Advent has offices in 16 countries and employs 180 investment professionals across North America, Europe, Latin America and Asia. Founded in 1984 and headquartered in Boston, Advent has $42 billion in assets under management and has completed more than 300 buyout and private equity transactions (www.adventinternational.com).
UBS Investment Bank is serving as financial advisor and Hogan Lovells is serving as legal advisor to Fort Dearborn on the transaction. Citigroup is serving as financial advisor and Kirkland & Ellis is serving as legal advisor to Advent.
© 2016 Private Equity Professional • 8-12-16
