folding cartons

PPC Continues Folding Carton Build

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LBP Manufacturing, a portfolio company of PPC Partners since July 2015, has acquired the quick-service restaurant business of Dominion Packaging (Dominion QSR). Brett Hawkins, one of the founders of Dominion, is joining LBP as part of this transaction.

Dominion QSR is a producer of french fry cartons, meal boxes, pie cartons and other products used by national quick-service restaurant brands. The business operates out of a 245,000-square-foot manufacturing facility located in Richmond, VA.

“Brett and his team have built Dominion QSR into a market leader in the folding carton space,” said Matt Cook, CEO of LBP. “The company’s culture of customer service and commitment to innovation align with LBP’s core values. We are excited to add the Dominion QSR business to LBP.”

LBP is a maker of food and beverage packaging including cups, catering trays, clamshells and other containers. The company’s patented product portfolio includes Coffee Clutch hot cup sleeve, Beverage on the Move insulated beverage to-go carrier and THERMO GRIP double-wall hot cups.

LBP’s customers include, among others, McDonald’s, Dunkin’ Donuts and Starbucks. In September 2018, LBP received the 2018 Vendor Innovation Award from Dunkin’ Brands. LBP has approximately 750 employees and is headquartered just outside of Chicago in Cicero, IL and has additional facilities in Poland and China (www.lbpmfg.com).

“This acquisition will allow LBP to better serve its customers by rounding out the company’s portfolio of folding carton and corrugated packaging products,” said Thomas Chadwick, a Vice President at PPC Partners. “We continue to be enthusiastic in our support of LBP as they expand their value proposition to their customers.”

PPC Partners acquires North America-based middle-market companies that have enterprise values between $100 million and $750 million and EBITDA in excess of $15 million. Sectors of interest include manufactured products, services and healthcare.  The firm is led by Tony Pritzker and the former investment and operating professionals of Pritzker Group Private Capital. In July 2018, PPC Partners held a final closing of PPC Fund II LP at its hard cap of $1.8 billion. PPC Partners has offices in Chicago and Los Angeles (www.PPCPartners.com).

Dominion Packaging, the seller of Dominion QSR, is a producer of folding carton products to the tobacco, beverage and food markets. The company is headquartered in Richmond, VA (www.dompkg.com).

© 2018 Private Equity Professional | November 14, 2018

Charter Oak and Peninsula Acquire Seaboard Folding Box

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Charter Oak Equity and Peninsula Capital Partners have acquired a controlling interest in Seaboard Folding Box Company.

Seaboard Folding Box is a maker of primary and secondary paperboard boxes for the specialty food, pharmacy and hardware markets. The company is based northwest of Boston in Fitchburg, MA (www.seaboardfoldingbox.com).

“We are very excited to add Seaboard to the Charter Oak Equity portfolio of companies,” said Paul Roughan, Managing Partner of Charter Oak. “Seaboard has a solid track record of steady growth with strong margins and has developed an outstanding reputation among its customers. The company is an excellent platform for new acquisitions. We are immediately initiating a search for add-ons that can broaden Seaboard’s geographic presence and bring in new customers.”

Charter Oak Equity invests in niche manufacturing, packaging, medical products & services, specialty chemicals, consumer products and financial services companies ranging in size from start up to $200 million of enterprise value. Since founding in 1992, the firm has invested over $500 million in 30 portfolio companies and completed more than 50 acquisitions. Charter Oak is based in Westport, CT (www.charteroak-equity.com).

Allen Rabinow, the third generation owner and CEO of Seaboard Folding Box, will continue to manage the company and maintain a significant ownership position.  “We are thrilled to partner with Charter Oak and Peninsula,” said Mr. Rabinow. “Their additional capital along with their financial and operating experience will help us continue to expand the business through investment and strategic acquisitions.

“The combination of Mr. Rabinow’s executive talent, the company’s impressive financial performance and Charter Oak’s operational capabilities made this an attractive opportunity for Peninsula. We believe the company will benefit greatly from the additional capital and operational resources Peninsula Capital and Charter Oak collectively offer, and we look forward to supporting the future growth of Seaboard in both capacities over the coming years” said James Illikman, Partner at Peninsula Capital.

Peninsula Capital Partners provides from $5 million to $40 million in subordinated debt and equity capital to companies with $10 million to $100 million in revenue.  Peninsula invests across a range of industries but has specific interest in aerospace, manufacturing, information technology, industrial and professional services, consumer products, retail, food and distribution.  Since 1995, Peninsula has raised and managed approximately $1.2 billion of capital through five committed funds and is currently investing its fifth fund with total capital commitments of approximately $390 million. The firm was founded in 1995 and is based in Detroit (www.peninsulafunds.com).

Charter Oak, Peninsula Capital Partners and Mr. Rabinow provided the equity for the transaction. Peninsula also provided the mezzanine debt. Fifth Third Bank provided the senior debt.

2014 PEPD • Private Equity’s Leading News Magazine • 8-13-14

Enhanced Capital Invests in Climax

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Enhanced Capital Partners has invested $10.5 million in subordinated secured debt in Climax Manufacturing Company and Carthage Specialty Paperboard (collectively “Climax”). The investment was made through the firm’s SBIC fund, Enhanced Small Business Investment Company, LP.

Climax is a manufacturer of specialty paperboard, folding cartons, and custom packages. Climax will use the proceeds of the transaction to refinance existing debt and to fund a capacity expansion project at its paper mill. The company has operations in Lowville and Carthage, NY (www.climaxpkg.com).

“Enhanced Capital demonstrated its flexibility and speed throughout the entire process,” said Ted Cordes, CFO of Climax. “We are looking forward to working with the Enhanced Capital team over the coming years.”

The Enhanced Small Business Investment Company, LP is a SBIC fund set up by Enhanced Capital Partners for the purpose of providing debt and minority equity financing to US-based lower middle market companies. The firm invests from $3 million to $20 million per transaction in companies with revenues of at least $10 million and EBITDAs of at least $2 million. Enhanced Capital Partners is based in New York (www.enhancedcapital.com).

“We are excited to support the growth of Climax as it continues to build upon its best-in-class product offering,” said Barry Osherow, Managing Director at Enhanced Capital. “This transaction will position Climax to expand its production capacity.”

© 2013 PEPD • Private Equity’s Leading News Magazine • 10-14-13