US – PaperTech, a leading US manufacturer of paperboard packaging products for the frozen food industry and foodservice markets has been acquired by May River Capital for an undisclosed sum.
May River Capital is a Chicago-based private equity firm focused on investing in lower middle-market, industrial growth companies.
The company particularly invests in high growth businesses, including precision manufacturing, engineered products and instrumentation, specialized industrial services, and value-added industrial distribution services.
Papertech which was founded in 1999 produces provides sustainable, dual-ovenable paperboard trays and bowls to leading food brands and contract food packagers as well as commercial bakeries and quick-serve restaurants.
Commenting on the deal, Al Fotheringham, co-founder of PaperTech said: “After extensive evaluation, we are pleased to be partnering with May River Capital, given their focus on doing the right thing every day for employees and customers.
“We value May River’s unique operational mind-set and believe its leadership team will bring meaningful expertise and resources to capitalise on PaperTech’s outstanding growth opportunities.”
Following completion of the deal, PaperTech co-founder Larry Epstein will fully retire but will remain as a shareholder.
Meanwhile, Fotheringham will remain as a shareholder and will continue to serve as chief development officer.
Joining Fotheringham on the leadership team is Jim Morgan who will assume the role of the company’s Chief Executive Officer.
Morgan, a member of May River Capital’s Executive Resource Group, is an experienced leader in the paper and packaging industry, with deep expertise in PaperTech’s markets.
The new PaperTech CEO in a statement expressed his excitement to build upon PaperTech’s legacy while continuing to provide outstanding service and quality to long-standing customers.
Paper tech trays are made from 90% or greater renewable and sustainable materials are described as environmentally-friendly.
About 500 million of these trays annually exit the company’s factory annually.
Fotheringham, says the deal will enable PaperTech to expand its production capabilities, drive commercial innovation and enhance its strategic partnerships.
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