Gridiron Invests in Royal Paper

Gridiron Capital has made an investment in Royal Paper, a private label tissue manufacturer.

Royal Paper’s tissue products include bath tissue, paper towels, napkins, and facial tissue made from both virgin and recycled fibers. The company’s customers include retailers as well as commercial customers in the foodservice, lodging and industrial sectors. Royal Paper is headquartered in Phoenix and has three manufacturing facilities with a combined 1.1 million square feet of production and distribution space. The company is one of the largest tissue producers in the Western United States (www.royalpaper.us).

“We are extremely proud of the company we have built over the past 26 years and we’re excited to be teaming up with Gridiron and leveraging their network and experience partnering with family-owned businesses to help supercharge the business,” said Bob Sarraf, a co-founder of Royal Paper. Post-closing, Mr. Sarraf and his co-founder Sep Dardashti will serve as members of the Board of Directors of the company in partnership with Gridiron.

“We are impressed with Royal Paper’s dedication to consistent quality, reliability and its ability to meet its customers’ needs in a flexible manner and we look forward to working with the owners and existing management team to build upon its success and further enhance the company’s customer relationships over time,” said Will Hausberg, a Managing Director at Gridiron.

At closing of the investment, Kevin Otero was named as the new CEO of Royal Paper. Mr. Otero has decades of general management, sales, marketing and strategy experience from his tenure working in the consumer packaged goods space including multiple roles at Procter & Gamble, most recently as VP of Global Operations from 2009 to 2014. Since February 2015, Mr. Otero has been a partner at Simpactful, a consumer packaged goods and retail consulting firm. “I’m excited to be joining such a great team with countless opportunities ahead and am looking forward to helping accelerate growth and continuing to build best-in-class private label capabilities to partner with and help our customers grow their tissue products category,” said Mr. Otero.

Gridiron Capital invests in manufacturing, service and specialty consumer companies that have EBITDAs from $8 million to $50 million. Sectors of interest include branded consumer, B2B and B2C services, and niche industrial. In October 2016, Gridiron held a final closing of the firm’s third fund, Gridiron Capital Fund III LP, at the hard cap of $850 million. The firm is based in New Canaan, CT (www.gridironcapital.com).

© 2018 Private Equity Professional | November 6, 2018

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