Monomoy Capital Partners has acquired Mac Papers and its subsidiary All Square Digital Solutions (together Mac Papers).
Mac Papers, with annual revenues of more than $600 million, is a wholesale distributor of paper, packaging, envelope products, wide-format inkjet printers, and other digital print media products. Mac Papers is a third-generation, family-owned and operated business that was founded by Frank and Tom McGehee as a fine paper distributor in 1965. Today, the company is led by their three sons – David, Sutton and Mac McGehee.
“We have felt privileged to lead the business our fathers Frank and Tom started 55 years ago, and we are confident that it will continue to grow and enjoy a very bright future under Monomoy’s ownership,” said Mac Papers President Sutton McGehee.
At closing, Chief Operating Officer Rick Mitchell has been named the president of the company, he will also continue as chief operating officer; and Greg Gay will continue as the company’s chief financial officer. “The entire Mac Papers team looks forward to working with Monomoy. Their extensive resources and capabilities will allow us to advance the company’s many strategic and operational initiatives,” said Mr. Mitchell.
Jacksonville, Florida-headquartered Mac Papers has 19 branches located throughout the Southeast and, at its Jacksonville facility, converts and prints up to 18 million standard and custom envelopes each day that are sold through Mac Papers and directly to third parties.
“We would like to congratulate and thank the McGehee family for building a premier, market-leading business in paper and packaging distribution headquartered in Jacksonville,” said Stephen Presser, a co-founder and partner of Monomoy. “Mac Papers is a proven, highly-regarded supplier to a diverse customer base, a true partner with its suppliers and is well-positioned for continued success in the future.”
New York City-based Monomoy makes control investments of debt and equity in companies with at least $150 million in sales, $15 million of EBITDA, and enterprise values of up to $500 million. Sectors of interest include manufacturing, industrial, distribution, and consumer products.
“We are excited to welcome Mac Papers to Monomoy’s portfolio,” said Dan Collin, a co-founder and partner of Monomoy. “Mac Papers is the preeminent regional paper supplier in the Southeast with a significant and growing presence in packaging and wide format products. We look forward to continuing the work of the McGehee family as we help management grow the business in the years ahead.”
Mesirow Financial was the advisor to the McGehee family and Mac Papers and Bank of America provided acquisition financing to support the transaction. Spirit Realty Capital, a Dallas-based real estate investment trust, executed a sale-leaseback transaction with Monomoy as part of the transaction.
Monomoy acquired Mac Papers through its third private equity fund, Monomoy Capital Partners III LP, and is the fifth family-owned business acquired by Monomoy over the past two years. In fact, just last week, the firm closed on the buy Florida-based Shaw Development, a third-generation family-owned and Florida-based provider of emission control components with annual revenues of about $200 million.
© 2020 Private Equity Professional | March 17, 2020