H.I.G. Capital has acquired Jackson Paper Manufacturing, a maker of recycled corrugated packaging. H.I.G. is partnering with the company’s senior management team on this transaction.
Jackson Paper Manufacturing (JPM) specializes in the manufacturing of 100% recycled medium, corrugated sheets and digitally printed corrugated packaging that are used in the e-commerce, food and beverage, durable and non-durable goods sectors.
JPM was formed in 1995 by Tim Campbell and Jeff Murphy to purchase a Sylva, North Carolina paper mill owned by Tenneco. Today, JPM is led by President Carr Tyndall and has more than 200 employees at four facilities in Sylva and Morgantown, North Carolina; and Dalton, Georgia.
“Over the last five years, we have made substantial strategic investments to evolve into an environmentally-focused, vertically integrated platform. Now, more than ever, our customers are increasingly relying on us to deliver high-quality, customized solutions that support increasing end-user demand,” said Mr. Tyndall.
H.I.G. specializes in providing debt and equity capital to small and medium-sized companies and invests in management buyouts, recapitalizations, and corporate carve-outs of both profitable as well as underperforming manufacturing and service businesses. In September 2020, H.I.G. held an above-target close of H.I.G. Capital Partners VI LP with aggregate capital commitments of $1.3 billion.
“We believe JPM represents a compelling opportunity to invest in a differentiated provider of sustainable packaging solutions,” said John Von Bargen, a managing director at H.I.G. “The company’s integrated platform and focus on quality, innovation and service have increasingly positioned the company as a value-added partner to its customers. We look forward to working with the team to build upon their success and support continued growth initiatives.”
H.I.G. has previously invested in the paperboard and corrugated sector. In May 2013, H.I.G. acquired Georgia-based Caraustar, then one of North America’s largest integrated manufacturers and converters of 100% recycled paperboard and converted paperboard products. Caraustar was sold to publicly traded Grief in February 2019, and during H.I.G.’s ownership term Caraustar’s revenue and profitability more than doubled through both organic growth and add-on acquisitions.
H.I.G. was founded in 1993 and is headquartered in Miami with additional offices in New York, Boston, Chicago, Dallas, Los Angeles, San Francisco, and Atlanta.
© 2021 Private Equity Professional | September 10, 2021
