Wellspring Capital Management has completed its buy of Hoffmaster Group, a maker of disposable tableware, from Metalmark Capital. This transaction was announced on October 20, 2016.
Hoffmaster’s products – which include napkins, plates, placemats, and table covers – are sold to foodservice distributors, retail, grocery, mass merchants and club-store customers. The company was founded in February 1947 by B.T. Hoffmaster as a maker of paper napkin products. Hoffmaster is headquartered in Oshkosh, WI (www.hoffmaster.com). The current management team of Hoffmaster – led by CEO Rory Leyden – will continue with the company under Wellspring ownership.
Hoffmaster has a private equity lineage. In October 2007, New York-based Kohlberg & Company acquired two companies – Hoffmaster Company from Solo Cup and Converting, Inc. from Mason Wells – and merged the two companies under the new name of Hoffmaster Group. Under its ownership, Kohlberg completed a number of add-ons including the September 2008 buy of lace and linen paper products makers Brooklace and Smith-Lee (they shared common ownership); and paper plate and napkin maker InnoWare Paper in April 2011. In December 2011, Kohlberg sold Hoffmaster Group to Metalmark Capital.
“We would like to thank the Metalmark team for its dedicated support over the past five years,” said Rory Leyden, Chief Executive Officer of Hoffmaster. “Metalmark’s expertise and strategic counsel have been integral to our success as a market-leading North American designer, manufacturer and supplier of decorated, premium disposable tableware.”
Metalmark Capital was established by the principals of Morgan Stanley Capital Partners (MSCP) to manage the Metalmark Capital and MSCP funds. Since 1986, the Metalmark Capital and MSCP funds have invested $7 billion of equity capital in over 100 companies. Sectors of interest include healthcare, energy and industrials. Metalmark is currently investing through its latest fund that has $2.5 billion of committed capital. The firm is based in New York (www.metalmarkcapital.com).
“We thank Rory and his management team for their outstanding performance and achievements,” said Leigh Abramson, a Partner of Metalmark. “Working with them has been very rewarding and we are proud of the company’s growth over the past few years. Given Wellspring’s expertise and Rory’s excellent leadership, we are confident that Hoffmaster will continue to succeed.”
Wellspring is a middle-market private equity firm that manages more than $3 billion of private equity capital. The firm was founded in 1995 and is based in New York (www.wellspringcapital.com).
Robert W. Baird & Co. was the financial advisor to Hoffmaster on this transaction.
© 2016 Private Equity Professional
November 30, 2016
