Industrial Opportunity Partners (IOP) has sold its portfolio company Midwest Paper Group to McKinley Paper Company. IOP acquired Midwest Paper in December 2019.
Midwest Paper manufactures and distributes more than 400,000 tons per year of recycled containerboard used in corrugated packaging and recycled bag products. Founded in 1889, Midwest Paper employs more than 320 people and is headquartered southwest of Green Bay in Combined Locks, Wisconsin.
During IOP’s hold period, Dave Mackin, an IOP operating principal, served as Midwest Paper’s CEO. “We’re pleased with what the company accomplished during IOP’s ownership period,” said Mr. Mackin. “The Midwest Paper team successfully executed IOP’s investment operating plan which included commercial initiatives and operational improvements that turned a once struggling paper mill into a thriving business.”
Albuquerque-based McKinley Paper Company operates two paper mills in the United States, one in New Mexico and the other in Washington. The company is a subsidiary of Bio Pappel, the largest manufacturer of paper and paper products in Mexico and Latin America.
IOP focuses on acquiring middle-market manufacturing and value-added distribution businesses, typically with revenues between $30 million and $400 million. The firm targets businesses with strong product, customer, and market positions and provides both management and operational resources to support sales growth and operational improvements. IOP is headquartered in the Chicago suburb of Evanston.
“We’re proud to have invested in a company that we believe advances environmentally friendly products, and we would like to thank the entire management team and workforce at Midwest Paper for their commitment and efforts throughout the company’s partnership with IOP,” said IOP Managing Director Kyle Hood. “We believe Midwest Paper is poised for continued success under Bio Pappel’s ownership.”
This sale of Midwest Paper is the first from IOP’s third fund, Industrial Opportunity Partners Fund III LP, which closed in July 2017 with $450 million of committed capital.
Deloitte Corporate Finance was the financial advisor to both IOP and Midwest Paper, and McDermott Will & Emery provided legal services.
© 2022 Private Equity Professional | February 23, 2022
