Altamont’s Specialized Packaging Buys Clark Foam

Altamont’s Specialized Packaging Buys Clark Foam

Monroe Capital supported Altamont’s acquisition of Specialized Packaging in 2020 and also backed the acquisition of Clark Foam

Clark Foam designs and fabricates engineered foam products and protective packaging products from a range of materials including foams, blended rubber, vinyls, natural sponge rubber, and synthetic fiber.

SOURCE: Clark Foam

Specialized Packaging Group (SPG), a portfolio company of Altamont Capital Partners, has acquired Clark Foam Corporation. The buy of Clark Foam is the eighth add-on acquisition for SPG since being acquired by Altamont in December 2020.

Clark Foam is a designer and fabricator of engineered foam products and protective packaging products. The company offers custom fabrication services, utilizing cutting equipment to create intricate shapes and sizes from a range of materials including foams, blended rubber, vinyls, natural sponge rubber, and synthetic fiber.

Source: Clark Foam

Some of Clark’s primary products include crosslink foam, a closed-cell foam known for its compact feel and water resistance; polyethylene foam which is used in applications ranging from sporting goods to packaging for fragile electronics; and filter foam which is used in small engine filters, air filtration systems, dust and water filters. Many of Clark’s products are used in automotive, consumer products, medical, packaging, semiconductors, energy and aerospace applications.

Clark Foam operates from two facilities, one each in Illinois and Kentucky. The company, led by its president and owner Jim Clark, was founded in 1951 and is headquartered near Chicago in Bolingbrook, Illinois. Post-closing, Mr. Clark will retire from day-to-day operations and will be retained in an advisory role for a short transitionary period.

“The Clark Foam team is thrilled to join SPG, and we look forward to taking our combined business to the next level,” said Mr. Clark. “In addition, and after building Clark Foam from the ground up, it was important to know that the company would be in good hands after I step away from day-to-day operations. SPG will continue our legacy of building strong, one-on-one relationships with customers and providing high-quality service and products. I’m grateful for a smooth and successful transaction that led to the best possible result for Clark Foam and our employees.”

Specialized Packaging Group (SPG) serves as the parent organization for several packaging brands, including ProtecPac, Packaging Concepts & Design, Ivex, and Pacific Pulp Molding. SPG’s material capabilities include engineered foams like polyethylene, various paper products such as bleached and natural kraft paper, grease-resistant paper, and laminated metallized films. The company also works with multi-substrate materials, bubble cushioning, single-face corrugated materials, foil and paper laminates, and polycoated paper.

Many of SPG’s products are used in the aerospace, automotive, electronics, medical, and consumer goods industries. Examples include molded pulp trays for shipping electronic components and custom-engineered foam inserts for protecting automotive parts. SPG has more than 1,700 employees and operates 24 facilities across the United States, Canada, and Mexico, with its headquarters located in Oakland, California.

The acquisition of Clark Foam will expand SPG’s engineered packaging capabilities and geographic reach while adding approximately 50 employees to its 1,700-person workforce.

“The addition of Clark Foam to our rapidly expanding team means we will be adding industry-leading custom-engineered packaging capabilities to an operation that is already world-class. Clark has been a go-to provider of protective packaging and foam fabrication solutions for over 70 years,” said Paul Budsworth, the CEO of SPG. “We are also excited to strengthen our presence in the Chicago and Louisville areas, as well as the Midwest market broadly, allowing us to better serve our customers.”

Monroe Capital (NASDAQ: MRCC), which supported Altamont’s acquisition of SPG in 2020, was the administrative agent and joint lead arranger on a senior credit facility to back the acquisition of Clark Foam. Monroe provides senior and junior debt financing to middle-market businesses, special situation borrowers, and private equity sponsors. Investment types include unitranche financings; cash flow, asset-based, and enterprise value-based loans; and equity co-investments. The firm was founded in 2004 and is headquartered in Chicago with 10 additional offices throughout the United States and Asia.

Altamont invests equity of $15 million to $150 million in companies that have up to $100 million of EBITDA. Sectors of interest include business services, healthcare, consumer and retail, industrials, and financial services. The firm was formed in 2010 by Randall EasonJesse Rogers, and Keoni Schwartz who previously worked together at Golden Gate Capital and Bain & Company. Today, the firm has $4 billion of capital under management and is based in Palo Alto, California, with an additional office in Austin, Texas.

© 2024 Private Equity Professional | June 27, 2024

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