Pacon Corporation, a supplier of education and arts & crafts products, has acquired the assets of the art and craft division of Carolina Pad and Paper (CPP). Under the terms of the agreement, Pacon acquired CPP’s Ghostline and UCreate branded product lines. Pacon has been a portfolio company of Mason Wells since November 2011.
Carolina Pad and Paper serves the retail market with a variety of art and craft products under the Ghostline and UCreate brands, including construction paper, art pads, and poster board. In addition, CPP sells a line of notebooks, binders, planners, backpacks, and accessories under the Studio C brand name. CPP will continue to manufacture and market the Studio C line of products (www.shopstudioc.com).
Pacon, acquired by Mason Wells from The Van Hoof Companies in November 2011, is a provider of educational and arts & crafts products marketed through retailers, educational distributors, and wholesalers. Pacon sells its products into the school and art markets. In the school market, Pacon is a converter and marketer of consumable school supplies sold under numerous brands, including Peacock, Tru-Ray, and Fadeless to the K-6 market. In the art market, Pacon is a converter and marketer of art papers sold primarily under the Strathmore Artist Papers brand to student, professional, and recreational artists. Pacon was founded in 1951 and is led by Jim Schmitz, President and CEO. The company is based in Appleton, WI (www.pacon.com) (www.strathmoreartist.com).
“Mason Wells was pleased to support the Pacon management team in its acquisition of CPP’s art and craft division,” said Chris Pummill, a Vice President of Mason Wells. “The acquisition enhances Pacon’s market reach and product line. It is yet another example of management’s ability to identify, acquire, and integrate complementary businesses.” CPP’s art and craft business will be moved to Pacon’s facilities in Appleton, WI.
Mason Wells makes investments in Midwest-based companies with revenues of $25 million to $300 million and EBITDAs of $5 million to $30 million. Sectors of interest include consumer packaged goods; packaging materials and converting; outsourced business services; and engineered products and services. In February 2016, Mason Wells held a final closing of Mason Wells Buyout Fund IV and its related Executive Buyout Fund IV with total commitments of $615 million. The firm was founded in 1998 and is based in Milwaukee (www.masonwells.com).
Debt financing for this transaction was provided by members of Pacon’s existing lender group which is led by US Bank.
© 2017 Private Equity Professional | October 31, 2017