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Mason Wells Acquires Roselle Paper

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roselle paper nf1Pacon Corporation, a portfolio company of Mason Wells, has acquired certain assets of Roselle Paper including the company’s equipment, inventory and trade names.

Equity financing for the transaction was provided by Mason Wells and certain members of Pacon’s executive team and board of directors.

tom smith nf1“Mason Wells is pleased to re-invest alongside the management team to support Pacon’s growth initiatives,” said Tom Smith, executive managing director of Mason Wells.  “The acquisition of Roselle’s assets achieves many of Pacon’s strategic initiatives, including diversification of its customer base and broadening its product offerings.”

Roselle Paper is a producer of school, office and art products. The company serves the education, art and office markets through retailers, school distributors and wholesalers. The company was founded in 1964 and is based south of Newark in Roselle, NJ (www.rosellepaper.com).

Pacon Corporation, acquired by Mason Wells in November 2011 from The Van Hoof Companies, is a converter and marketer of education, art and craft products marketed globally through retailers, educational distributors and wholesalers. Pacon primarily sells its products into two markets: school and art.  Company brand names include Peacock, Tru-Ray, Fadeless and Strathmore Artist Papers.  Pacon has facilities in Appleton and Neenah, WI; Barrie, ON; and Shropshire, UK.  The acquired assets and operations of Roselle will be consolidated with Pacon’s facilities in Appleton and Barrie.  Pacon was founded in 1951 and is headquartered in Appleton, WI (www.pacon.com) (www.strathmoreartist.com).

Mason Wells makes investments in Midwest-based companies with revenues of $25 million to $300 million and EBITDAs of at least $5 million. Sectors of interest include consumer packaged goods, packaging materials & converting, and engineered products & services.  The firm is currently investing through Mason Wells Buyout Fund III, a $525 million fund.  Mason Wells was founded in 1982 and is based in Milwaukee (www.masonwells.com).

Debt financing was provided by members of Pacon’s existing lender group, which is led by US Bank.  Quarles & Brady served as legal counsel to Pacon Corporation.

2014 PEPD • Private Equity’s Leading News Magazine • 10-16-14

Peak Rock Adds-on Roses Southeast Papers

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atlas papers nf1Atlas Southeast Papers, an affiliate of Peak Rock Capital, has purchased Roses Southeast Papers, a manufacturer of tissue paper products.

Roses Southeast Papers produces a complete line of tissue products, including bath tissue, towels, and cocktail, dinner and dispenser napkins. The company is headquartered in Sanford, FL.

“Atlas Southeast’s purchase of the Roses Southeast manufacturing facility highlights Peak Rock’s continued focus and differentiated ability to identify, acquire and optimize strategic manufacturing assets,” said Anthony DiSimone, CEO of Peak Rock Capital.  “We are excited to add this business to our growing portfolio of outstanding companies.”

Atlas Southeast Papers is a manufacturer of private label and branded tissue products utilizing either virgin or recycled paper fibers.  The company produces a complete line of tissue products, including bath tissue, towels, and cocktail, dinner and dispenser napkins. The company is headquartered in Sanford, FL (www.atlastissue.com).

“Atlas Southeast’s manufacturing expertise and overall commitment to excellence have allowed the Company to produce a diverse set of product offerings that are highly in demand.  We are excited to now own the Roses Southeast facility and to support the company’s growth through organic initiatives, strategic partnerships and potential add-on acquisitions,” said Peter Leibman, Managing Director of Peak Rock Capital.  “Today’s announced acquisition further evidences our enthusiasm for the tissue paper manufacturing sector, a space which we know quite well through our 2013 investment in Atlas Paper Mills.

Peak Rock Capital makes debt and equity investments of $20 million to $150 million in middle market companies with revenues from $50 million to $1 billion and enterprise values from $25 million to $500 million. Sectors of interest include business and commercial services; consumer; distribution and logistics; energy and related services; healthcare; industrials; manufacturing, metals, and media. The firm is based in Austin (www.peakrockcapital.com).

Mesirow Financial acted as the financial advisor to Peak Rock Capital on the transaction. 

2014 PEPD • Private Equity’s Leading News Magazine • 9-23-14

H.I.G. Acquires Cascades Fine Papers Group from Cascades

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cascadesH.I.G. Capital has teamed with management to complete the acquisition of the Cascades Fine Papers Group from Cascades, Inc. The company will be re-named Rolland Enterprises, the former name of the business prior to joining Cascades, Inc.

Rolland is the market leader in the production of specialty fine papers using recycled fibers and the undisputed highest standards for environmental sustainability. The company produces fine papers with up to 100% post-consumer waste content and targets a diversified base of customers in commercial, B2B, government and education segments. Additionally, CFPG also has a long history as a leading producer of security papers, including paper used in passports, visas, tax stamps and checks. The company is headquartered in Saint-Jérôme, Quebec (no website found).

“This transaction provides stability and growth opportunities for all Rolland employees, customers, and suppliers. We are excited about the future of the business and the partnership with H.I.G,” said Daniel Parrot, President and COO of Rolland Enterprises.

Assets included in the sale include the Rolland paper mill and converting center in Saint-Jérôme, Quebec, as well as the deinking facility in Breakeyville, Quebec. The fully vertically integrated platform enables the company to control quality and cost while maintaining its reputation for superior product performance.

stokes“The company is the industry leader with a long track record of producing innovative, high-quality products and the highest level of environmental sustainability. We are pleased to support the team in their growth and continued success,” said Ricky Stokes, Managing Director of H.I.G. Capital.

H.I.G. Capital specializes in providing capital to small and medium-sized companies and invests in management-led buyouts and recapitalizations of manufacturing or service businesses. H.I.G. Capital has more than $15 billion of capital under management. The firm was founded in 1993 and is based in Miami with additional offices in Atlanta, Boston, Chicago, Dallas, New York, San Francisco, London, Hamburg, Madrid, Milan, Paris, and Rio de Janeiro (www.higcapital.com).

2014 PEPD • Private Equity’s Leading News Magazine • 7-2-14

KPS Capital Partners Closes on Wausau Specialty Papers

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Expera Specialty Solutions, a newly formed portfolio company of KPS Capital Partners, has completed the previously announced acquisition of the specialty paper business of Wausau Paper.

The specialty paper business of Wausau is a manufacturer of paper products used in the tape, pressure-sensitive release liner, coated products, industrial and food packaging sectors. The specialty paper business has approximately 900 employees in two paper mills located in Rhinelander, WI and Mosinee, WI.

KPS Capital Partners is the manager of the KPS Special Situations Funds, a group of private equity funds with over $6 billion of committed capital focused on investing in restructurings, turnarounds and other special situations. The KPS investment strategy targets manufacturing and industrial companies with strong market positions that are going through a period of transition or experiencing operating or financial difficulties. The firm’s portfolio companies have aggregate annual revenues of approximately $6.8 billion, operate 85 manufacturing plants in 25 countries, and employ over 29,000 associates worldwide. KPS Capital Partners is headquartered in New York (www.kpsfund.com).

© 2013 PEPD • Private Equity’s Leading News Magazine • 6-27-13

Brookfield Exits Longview Fibre

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KapStone Paper and Packaging has signed an agreement to acquire the stock of Longview Fibre Paper and Packaging from Brookfield Asset Management for $1.02 billion in cash.

Longview is a manufacturer of containerboard, lightweight high performance multiwall paper, specialty Kraft papers, and corrugated containers. Longview’s operations include a mill located in Longview, WA equipped with five paper machines which produce 1.15 million tons of containerboard and Kraft paper annually. In 2012, Longview generated $831 million in net sales and $118 million of EBITDA. In the first quarter of 2013, Longview’s net sales were $217 million generating $42 million of EBITDA. The company is based in Longview, WA (www.longviewfibre.com).

“We are excited to be part of the KapStone family. It’s a great opportunity for our customers and employees. Our product lines complement each other and provide us with a national presence in corrugated containers. We thank Brookfield for the support they have given us,” said Randy Nebel, President of Longview.

Brookfield Asset Management is a global alternative asset manager with over $175 billion in assets under management. The firm has headquarters in Toronto and New York (www.brookfield.com).

“I would like to thank all of the people at Longview who have contributed toward building a safe and successful business and I am confident that this success will continue with KapStone,” said Hugh Sutcliffe, Managing Partner of Brookfield.

KapStone Paper and Packaging (NYSE: KS) is a pulp and paper company with Kraft paper manufacturing facilities in Roanoke Rapids, NC; Cowpens, SC; and North Charleston, SC; a lumber mill in Summerville, SC; and 15 corrugated box and corrugated fiberboard plants. The company was originally started as a special-purpose acquisition company in 2005. It became an ongoing business concern when it acquired the Roanoke Rapids Kraft paper mill from International Paper in January 2007. In July 2008 it acquired the Charleston Kraft paper mill from MeadWestvaco. In October 2011 KapStone acquired U.S. Corrugated for $330 million. Today, KapStone has approximately 2,700 employees and is based in Northbrook, IL (www.kapstonepaper.com).

Bank of America, Barclays Bank, and Wells Fargo Bank have provided committed financing to KapStone for this transaction.

© 2013 PEPD • Private Equity’s Leading News Magazine • 6-12-13

KPS Capital Partners Forms Expera Specialty Solutions

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KPS Capital Partners has formed a new company, Expera Specialty Solutions, to complete the previously announced acquisitions of Wausau Specialty Paper from Wausau Paper, and the specialty paper business (“Thilmany Papers”) of Packaging Dynamics Corporation, a portfolio company of Kohlberg & Company. Closing of these acquisitions are expected to occur simultaneously during the second or third quarter of 2013.

“We are very excited to create Expera. Through the acquisitions of Wausau Specialty Paper and Thilmany, Expera immediately becomes North America’s leading manufacturer of specialty paper solutions with an industry leading portfolio of brands,” said Raquel Palmer, a KPS Partner. “The new company, with its reputation for exceptional quality, customer focus, technical expertise and product innovation, coupled with KPS’s capital resources, will be perfectly positioned to capitalize on the growth in niche, non-commodity markets, where engineered and applied technological solutions are critical to success.”

Wausau Specialty Paper is a manufacturer of specialty paper products for use in the tape, pressure-sensitive release liner, coated products, industrial and food packaging segments. Wausau Specialty Paper has approximately 900 employees across two mills located in Rhinelander, WI and Mosinee, WI (WausauSpecialtyPaper).

Thilmany Papers manufactures a range of specialty bleached and unbleached lightweight papers and pressure sensitive release base papers used by customers for food and non-food packaging in such applications as: sandwich wraps; box closure taping system; insulation backing; microwave popcorn bags; and confectionary cups. The company’s pressure sensitive release base papers are also used by customers to provide a protective backing for self-adhesive materials including: business and consumer labels; airline baggage tags; food labels; industrial tapes and sealants; consumer ID labels; feminine hygiene; medical products; and laser & inkjet applications. Thilmany Papers has approximately 900 employees at manufacturing facilities located in Kaukauna and De Pere, WI (www.thilmany.com).

“The creation of Expera was the result of two distinct and complex acquisitions that were negotiated and signed in parallel,” said Ms. Palmer. “We look forward to growing Expera aggressively, both organically and through acquisition on a global scale. We thank the United Steelworkers Union for its critical support of our vision for the specialty paper industry in North America, the creation of Expera and its first two acquisitions.”

Financing will be provided by a syndicate of banks and institutional investors with Goldman Sachs and GE Capital Markets acting as Lead Arrangers.

KPS Capital Partners is the manager of the KPS Special Situations Funds, a group of private equity funds with over $6 billion of committed capital focused on investing in restructurings, turnarounds and other special situations. The KPS investment strategy targets manufacturing and industrial companies with strong market positions that are going through a period of transition or experiencing operating or financial difficulties. The firm’s portfolio companies have aggregate annual revenues of approximately $6.8 billion, operate 85 manufacturing plants in 25 countries, and employ over 29,000 associates worldwide. KPS Capital Partners is headquartered in New York (www.kpsfund.com).

© 2013 PEPD • Private Equity’s Leading News Magazine • 5-21-13

KPS Acquires Thilmany Papers from Kohlberg

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Packaging Dynamics, a manufacturer of flexible packaging and specialty papers and a portfolio company of Kohlberg & Company, has agreed to sell its Thilmany Papers business unit to KPS Capital Partners.

Last month KPS Capital Partners also agreed to acquire the specialty paper business from Wausau Paper for $130 million. Following the closing of these transactions, the new company will include Thilmany Papers’ Nicolet and Kaukauna mills and Wausau Paper’s Mosinee and Rhinelander mills, all of which are located in Wisconsin.

Thilmany Papers product line consists of a range of specialty bleached and unbleached lightweight papers and pressure sensitive release base papers used by customers for food and non-food packaging in such applications as: sandwich wraps; box closure taping system; insulation backing; microwave popcorn bags; and confectionary cups. The company’s pressure sensitive release base papers are also used by customers to provide a protective backing for self-adhesive materials including: business and consumer labels; airline baggage tags; food labels; industrial tapes and sealants; consumer ID labels; feminine hygiene; medical products; and laser & inkjet applications. Thilmany Papers has facilities in Kaukauna and Nicolet, WI (www.thilmany.com).

Closing of the Thilmany Papers transaction is conditioned upon the completion of the Wausau transaction and ratification of a new collective bargaining agreement between the new company and the United Steel Workers.

“Our team here at Thilmany is proud to be playing a critical role in the creation of a major new Wisconsin-based company. By combining Thilmany and Wausau’s Specialty Paper Business, we and KPS are establishing one of the leading specialty paper companies in North America. We believe the combination will result in a company with the product breadth and customer reach to capitalize on the growing worldwide demand for specialty papers,” said Russ Wanke, Vice President and General Manager of Thilmany Papers.

KPS Capital Partners is the manager of the KPS Special Situations Funds, a group of private equity funds with over $6 billion of committed capital focused on investing in restructurings, turnarounds and other special situations. The KPS investment strategy targets manufacturing and industrial companies with strong market positions that are going through a period of transition or experiencing operating or financial difficulties. KPS portfolio companies have aggregate annual revenues of approximately $6.8 billion, operate 85 manufacturing plants in 25 countries, and employ over 29,000 associates worldwide. KPS Capital Partners is headquartered in New York (www.kpsfund.com).

Kohlberg & Company is a control investor in a variety of industries including manufacturing, healthcare, consumer products and service industries. Since its inception in 1987, Kohlberg has completed more than 57 platform investments and more than 112 add-on acquisitions, with aggregate transaction values in excess of $8 billion. The firm is located in Mt. Kisco, NY (www.kohlberg.com).

Packaging Dynamics is a flexible packaging and specialty papers company. The company operates four business units – BagcraftPapercon, International Converter, De Luxe and Thilmany Papers. The company is based in Chicago (www.pkdy.com).

© 2013 PEPD • Private Equity’s Leading News Magazine • 4-25-13

Wingate Partners Acquires Nekoosa Coated Products

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Wingate Partners has acquired Nekoosa Coated Products, a manufacturer of specialty paper products, from Dunsirn Partners and PS Capital Partners.

Nekoosa Coated Products is a manufacturer of specialty paper products including carbonless cutsheet and digital carbonless paper for businesses and institutions such as printers, banks and hospitals. The business was part of 3M until it was spun out in 1996 as one of seven operating divisions of Imation, a new company formed by 3M. In 2005, the Imation Specialty Paper division was acquired by Dunsirn Partners and renamed Nekoosa Coated Products. In 2006, the company acquired the carbonless paper business of Nashua Corporation to further expand Nekoosa’s presence in the carbonless market. Nekoosa Coated Products is headquartered in Nekoosa, WI (www.nekoosacoated.com).

Wingate Partners makes control equity investments in manufacturing, distribution and service businesses, typically with revenues between $50 million and $250 million. Since founding in 1987, Wingate has managed four funds with total capital of approximately $500 million. The firm is based in Dallas (www.wingatepartners.com).

Wingate partnered with Nekoosa president Paul Charapata, along with John Danio, vice president of sales and marketing, and Tim Reimer, controller, to acquire the business. “Nekoosa Coated Products is an ideal situation for Wingate – a strong, innovative management team that leads a very well positioned business in vital markets,” said Brad Brenneman, Principal at Wingate Partners. “We are honored to partner with Paul, John and the Nekoosa team and look forward to supporting their vision to further grow Nekoosa with the end goal of bringing increased value to our customers.”

“This investment by Wingate Partners enables us to accelerate our growth as we strive to provide even more value added products and services for our customers through a shared vision of strategic partnerships, including acquisitions,” said Mr. Charapata. “This is an exciting time for all Nekoosa employees and customers as we build upon the foundation of success we created together with a fantastic new partner.”

Greene Holcomb & Fisher (www.ghf.net), an investment banking firm that specializes in mergers and acquisitions, private placements and financial advisory services for the middle market, represented Nekoosa Coated Products in this transaction. “The transaction provides an opportunity for Nekoosa’s exceptional management team and dedicated employees to work closely with Wingate, a private equity firm with a well-earned reputation for supporting strategic growth,” said Eric Nicholson, Managing Director of Greene Holcomb & Fisher.

Dunsirn Partners makes control investments in small to mid-size manufacturing, distribution and packaging companies that have revenues from $20 million to $100 million. The firm is base in Greenville, WI (www.dunsirnpartners.com).

PS Capital Partners is a private equity firm founded by Paul Sweeney and Paul Stewart. With access to equity capital provided by high net worth individuals and family trusts, PS Capital Partners invests in manufacturing and process businesses located in the Upper Midwest with revenues ranging from $10 million to $50 million. The firm is based in Milwaukee, WI (www.pscapitalpartners.com).

© 2012 PEPD • Private Equity’s Leading News Magazine • 10-11-12

Black Diamond Acquires White Birch Paper Company

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BD White Birch Investment LLC, a company controlled by Black Diamond Capital Management, has completed the acquisition of the assets of White Birch Paper Company. This acquisition marks the completion of nearly three year restructuring process for the company.

“I am pleased that the conclusion of the restructuring process, together with significant new investment by the Brant Family and the Black Diamond-led investment group, has resulted in a healthier, better capitalized company,” said Peter Brant, Chief Executive Officer of the new White Birch. “The process of turning this company around would not have been possible without the support of our management team, new investors and the strong belief by all of our employees that this is a vital business that is well positioned to succeed in the global paper market for years to come. “

White Birch Paper Company (BD White Birch Investment ) is a manufacturer of newsprint, directory paper and paperboard, with mills located in Canada and the United States, and the second largest newsprint manufacturer in North America. The company is based in Quebec City, Canada (www.whitebirchpaper.com).

“I am pleased that this challenging restructuring process has resulted in a stronger, more competitive and more sustainable new White Birch. While the pulp and paper industry has undergone a significant transformation in recent years, thanks to the hard work and shared commitment of the management team and employees, the new White Birch is better positioned to succeed in this changing environment than ever before. I look forward to continuing to work with our partners at the company to ensure its future success,” said Les Meier, a Black Diamond Principal.

Black Diamond Capital Management invests in performing and distressed markets through the following four platforms: control distressed/private equity; hedge fund; mezzanine funds; and CLOs and other structured vehicles. The firm was founded in 1995 and employs more than 80 people across multiple offices, including Greenwich, CT; Lake Forest, IL; and London, UK (www.bdcm.com).

© 2012 PEPD • Private Equity’s Leading News Magazine • 9-19-12

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