specialty paper

Sentinel Capital Partners has acquired Nekoosa, a manufacturer of specialty paper and film products used in the graphics and commercial print markets, from Wingate Partners.

Nekoosa’s production capabilities includes coating, converting, and custom plastic extrusion. The company’s products are sold under the Nekoosa Coated Products, RTape, CET Films, and ClingZ brands and includes application and pressure sensitive tapes; specialty synthetic papers; sheeted digital and offset grade carbonless paper; and extruded film. The company’s products are sold through a network of more than 1,000 global distributors to more than 70,000 commercial print and graphics shops in 65 countries. Nekoosa is headquartered in Nekoosa, WI (www.nekoosa.com).

“Wingate has been an exceptional partner.  They have brought a wealth of experience and a low-ego, highly approachable style that fits our business culture well and resulted in a very strong partnership,” said Paul Charapata, Nekoosa’s CEO.

Wingate partnered with the Nekoosa management team to acquire the business in October 2012.  During the subsequent five years, Nekoosa completed four add-on acquisitions that diversified its product mix. “Prior to our investment, Nekoosa was largely a carbonless paper business with a vital base of commercial print merchant partners,” said Brian Steinbrueck, a Partner at Wingate. “CEO Paul Charapata and his team have transformed the business into a more diversified, higher performing company with a broader merchant base across graphics and commercial print channels.  They have created a truly unique business with a differentiated product offering and have a bright future ahead.”

Wingate Partners makes control equity investments in manufacturing, distribution and service businesses, typically with revenues between $50 million and $250 million and EBITDA between $5 million and $25 million. The firm was founded in 1987 and is headquartered in Dallas (www.wingatepartners.com).

Sentinel Capital Partners, the buyer of Nekoosa, invests in management buyouts, recapitalizations, corporate divestitures, and going-private transactions of businesses with EBITDAs up to $65 million. Sentinel targets eight industry sectors: aerospace & defense, business services, consumer, distribution, food & restaurants, franchising, healthcare services, and industrials. The firm is headquartered in New York (www.sentinelpartners.com).

“Nekoosa gives Sentinel an opportunity to partner with a differentiated industry leader that draws on a unique, niche product offering that is considered the ‘gold standard’ in its markets,” said Scott Perry, a Partner at Sentinel. “Nekoosa has enhanced its leadership position through its highly-specialized operational expertise, unparalleled distribution network, and excellent corporate culture committed to developing a first-class employee base. We are thrilled to partner with Nekoosa’s highly talented and committed management team.”

© 2017 Private Equity Professional | November 2, 2017

Wingate Partners has sold Dunn Paper to Arbor Investments. Wingate acquired Dunn Paper in July 2010 from Meriturn Partners.

Dunn Paper is a supplier of made-to-order specialty papers and tissues used in the food packaging and consumer product markets. Products include specialty waxed, coated, and uncoated machine glazed papers used in various foodservice and flexible packaging markets as well as high absorbency, porous and lightweight tissue products for niche consumer applications. The company, led by CEO Brent Earnshaw, has six mills located throughout the eastern US and Canada and is headquartered in Port Huron, MI (www.dunnpaper.com).

During Wingate’s six years of ownership the company saw a four-fold increase in revenue and an eight-fold increase in EBITDA. This performance improvement was the result of both organic growth and add-on acquisitions. In December 2014 Dunn acquired from Clearwater Paper Corporation its specialty mills business which produces specialty napkins, tissues and food packaging paper. This acquisition included five Clearwater Paper specialty tissue and machine glazed paper mills.

“Brent and the Dunn team have done an outstanding job of executing day in and day out to achieve a compelling vision.  They are first class people and world class operators.  It’s been a privilege to partner with them,” said Brad Brenneman, a Partner at Wingate.

Wingate Partners makes control equity investments in manufacturing, distribution and service businesses, typically with revenues between $50 million and $250 million. The firm was founded in 1987 and is headquartered in Dallas (www.wingatepartners.com).

“Dunn represents the ideal type of investment for Wingate,” said Brian Steinbrueck, a Partner at Wingate. “Prior to our investment, Dunn had been a relatively fragile business in a difficult industry.  However, Dunn has consistently provided a highly valuable service to its customers and the Dunn team has done a terrific job of executing on opportunities to make the business more differentiated and successful.”

“Wingate has been a great partner,” said Mr. Earnshaw. “They have brought a wealth of experience and a low-ego, highly approachable style that has made them a pleasure to partner with.  The Dunn team looks forward to continuing our growth with our new partners at Arbor.”

Arbor invests in the food, beverage and related industries. Typical targets will have annual revenues of up to $300 million and EBITDA from $5 million to $50 million. Since founding in 1999 the firm has acquired or invested in over 44 companies that were active in the frozen foods, baked goods, dairy, protein, foodservice equipment, bottling, ingredients, packaging, and distribution segments. In July 2016 Arbor closed its fourth equity fund, Arbor Investments IV, LP, with$765 million of capital and its first subordinated debt fund, Arbor Debt Opportunities Fund I, LP, with $125 million of capital. Fundraising was completed in just 90 days and both funds were significantly oversubscribed. Arbor is based in Chicago (www.arborpic.com).

Houlihan Lokey (www.hl.com) was the financial advisor to Dunn Papers and Wingate Partners. The Houlihan Lokey team was led by Senior Managing Director Bill Peluchiwski and Director Matt Bowersox.

© 2016 Private Equity Professional • 8-31-16