Industrial Opportunity Partners has acquired the assets of the Multiwall Packaging Division of Greif, Inc. and the stock of El Dorado Paper Bag Manufacturing Co. to form a new IOP platform company named El Dorado Packaging.
The Multiwall Packaging Division of Greif (the Division) is a producer of large format multiwall paper bags primarily for industrial use in the agricultural and food grade products markets. The Division will also soon enter the polywoven bag segment to serve the pet food and animal feed/supplements markets. The Division was founded in 1950 and operates from two facilities in Rosemount, MN and Omaha, NE.
El Dorado Paper Bag Manufacturing Co. is a producer of small format multiwall paper bags primarily for consumer use in the flour, sugar and pet food markets. Founded in 1963, El Dorado operates from a single facility in El Dorado, AR (www.eldoradopaperbag.com).
The management team of the Division will oversee the company with John Tettinger, General Manager of the Division, serving as President. IOP Operating Principal Jim Todd will serve as Chairman. “It is exciting to partner with IOP, an organization with an operating focus that will provide resources to grow and improve the businesses, each of which has a rich history and long track record of success,” said Mr. Tettinger.
IOP focuses on acquiring middle-market manufacturing and value-added distribution businesses, typically with revenues between $30 million and $350 million. IOP targets businesses with strong product, customer, and market positions and provides management and operational resources to support sales growth and operational improvements. The firm has $460 million of committed capital and was founded in 2005. IOP is headquartered in the Chicago suburb of Evanston (www.iopfund.com).
“We believe the Division and El Dorado are well-positioned, profitable businesses that complement each other and are an excellent fit together. We look forward to supporting them and their talented organizations in investing in and growing the businesses,” said Ken Tallering, Senior Managing Director of IOP.
Deloitte Corporate Finance represented the sellers of both the Division and El Dorado. Fifth Third Bank and Stonehenge Partners provided financing for the acquisitions. McDermott Will & Emery provided legal representation to IOP in the transactions.
El Dorado Packaging represents IOP’s fifth platform investment in Industrial Opportunity Partners II, LP.
2014 PEPD • Private Equity’s Leading News Magazine • 9-8-14
