Aterian Investment Partners has acquired Outlook Group, a provider of pressure-sensitive labels and packaging, from M&Q Holdings, a portfolio company of Heartwood Partners.
Outlook Group offers design, printing, and converting services for pressure-sensitive labels, flexible packaging, and folding cartons. The company serves various sectors, including food and beverages, consumer goods, health and beauty, medical devices, coffee, and pet products.
Founded in 1977 and led by CEO Mike Jansen, Outlook Group is headquartered in Neenah, Wisconsin, near Green Bay. The company employs 260 people and operates two Wisconsin-based facilities, totaling 500,000 square feet of manufacturing, warehouse, fulfillment, and R&D space.
Heartwood’s M&Q Holdings acquired M&Q Packaging in December 2015, followed by the acquisitions of Outlook Group in October 2016 and Flavorseal in February 2018. M&Q Packaging, based in Pennsylvania, manufactures high-temperature-resistant thermoplastic nylon, polyester, and polyamide packaging used across diverse end markets. Flavorseal, located in Ohio, provides flexible film and shrink wrap packaging, food processing and decorative netting, seasoning transfer products, and food safety supplies.
During its eight-year ownership, Heartwood expanded Outlook’s manufacturing capabilities with digital label presses, ultra-thin-film label converting equipment, and an ERP system tailored for packaging and label printing companies. These investments contributed to more than tripling Outlook’s EBITDA during Heartwood’s hold period.
“In partnership with Heartwood Partners, Outlook has developed into the preferred supplier of label, converting, and packaging solutions for our customers,” said Mr. Jansen. “Heartwood’s commitment to using a healthy corporate balance sheet enabled us to invest in people and processes, simultaneously driving growth and improving the overall customer experience. We are excited for the next phase of Outlook’s growth.”
“We are proud of what we have achieved together with Outlook Group,” said Mark Allsteadt, a managing partner at Heartwood. “Through our partnership, we have helped accelerate Outlook Group’s growth, strengthen its market position, and drive innovation. This successful exit underscores the value of our low-leverage strategy and commitment to building industry-leading companies. We’re excited to watch Outlook Group continue to thrive and build on the strong foundation we’ve established together.”
“Outlook is positioned for future success due to the company’s strong management team, high-touch service model, and deep capabilities,” said Ryan Miller, a managing director at Aterian. “We look forward to working closely with the company’s management team to drive growth through both organic initiatives and M&A.”
“We are excited to partner with the Outlook team to support the company through its next phase of growth,” said Brandon Bethea, a co-founder and partner at Aterian. “Outlook has an industry-wide reputation for quality earned through decades of superior service, resulting in a longstanding customer base.”
Aterian invests between $30 million and $150 million in middle-market businesses with revenues between $50 million and $750 million and EBITDA ranging from $10 million to $60 million. The firm’s latest fund, Aterian Investment Partners IV LP, began investing in April 2023 with $834 million of committed capital. The acquisition of Outlook Group marks the sixth platform investment for Fund IV. Aterian operates offices in New York City and Coral Gables, Florida.
Heartwood Partners invests in U.S.-based companies with revenues between $20 million and $250 million and EBITDA between $3 million and $30 million. Sectors of focus include food, agriculture, specialty chemicals, niche manufacturing, packaging, and industrial and consumer services. Heartwood is currently investing through its fourth fund, Heartwood Partners Fund IV LP. The Norwalk, Connecticut-based firm was founded as Capital Partners in 1982 and rebranded to Heartwood Partners in September 2020.
BMO Capital Markets served as the financial advisor to Outlook Group and its investors on the sale to Aterian.
© 2024 Private Equity Professional | November 8, 2024
