Wingate Sells Dunn Paper to Arbor
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Wingate Sells Dunn Paper to Arbor

dunn paper nf1Wingate Partners has sold Dunn Paper to Arbor Investments. Wingate acquired Dunn Paper in July 2010 from Meriturn Partners.

dunn paper nf55Dunn Paper is a supplier of made-to-order specialty papers and tissues used in the food packaging and consumer product markets. Products include specialty waxed, coated, and uncoated machine glazed papers used in various foodservice and flexible packaging markets as well as high absorbency, porous and lightweight tissue products for niche consumer applications. The company, led by CEO Brent Earnshaw, has six mills located throughout the eastern US and Canada and is headquartered in Port Huron, MI (www.dunnpaper.com).

During Wingate’s six years of ownership the company saw a four-fold increase in revenue and an eight-fold increase in EBITDA. This performance improvement was the result of both organic growth and add-on acquisitions. In December 2014 Dunn acquired from Clearwater Paper Corporation its specialty mills business which produces specialty napkins, tissues and food packaging paper. This acquisition included five Clearwater Paper specialty tissue and machine glazed paper mills.

Brad Brenneman nf1“Brent and the Dunn team have done an outstanding job of executing day in and day out to achieve a compelling vision.  They are first class people and world class operators.  It’s been a privilege to partner with them,” said Brad Brenneman, a Partner at Wingate.

wingate partners nf1Wingate Partners makes control equity investments in manufacturing, distribution and service businesses, typically with revenues between $50 million and $250 million. The firm was founded in 1987 and is headquartered in Dallas (www.wingatepartners.com).

Brian Steinbrueck nf1“Dunn represents the ideal type of investment for Wingate,” said Brian Steinbrueck, a Partner at Wingate. “Prior to our investment, Dunn had been a relatively fragile business in a difficult industry.  However, Dunn has consistently provided a highly valuable service to its customers and the Dunn team has done a terrific job of executing on opportunities to make the business more differentiated and successful.”

“Wingate has been a great partner,” said Mr. Earnshaw. “They have brought a wealth of experience and a low-ego, highly approachable style that has made them a pleasure to partner with.  The Dunn team looks forward to continuing our growth with our new partners at Arbor.”

arbor nf4Arbor invests in the food, beverage and related industries. Typical targets will have annual revenues of up to $300 million and EBITDA from $5 million to $50 million. Since founding in 1999 the firm has acquired or invested in over 44 companies that were active in the frozen foods, baked goods, dairy, protein, foodservice equipment, bottling, ingredients, packaging, and distribution segments. In July 2016 Arbor closed its fourth equity fund, Arbor Investments IV, LP, with$765 million of capital and its first subordinated debt fund, Arbor Debt Opportunities Fund I, LP, with $125 million of capital. Fundraising was completed in just 90 days and both funds were significantly oversubscribed. Arbor is based in Chicago (www.arborpic.com).

Houlihan Lokey (www.hl.com) was the financial advisor to Dunn Papers and Wingate Partners. The Houlihan Lokey team was led by Senior Managing Director Bill Peluchiwski and Director Matt Bowersox.

© 2016 Private Equity Professional • 8-31-16

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