PaperWorks Ind. merges with SPG

PaperWorks Industries, the largest independent manufacturer of coated- recycled board in the US, and The Specialized Packaging Group (SPG), a global leader in paperboard packaging design, engineering and manufacturing, are to merge their operations to form an integrated packaging business that will rank as the third largest integrated company in the coated recycled board market and among the top 10 folding carton companies in the US. The combined company will be owned by an affiliate of Sun Capital Partners, a private investment firm specializing in leveraged buyouts and investments in market-leading companies. Terms were not disclosed.

PaperWorks operates two mills, one in Philadelphia, PA, and one in Wabash, IN, which produce about 300,000 tons/year of 100% claycoated recycled paperboard. It serves the frozen foods, household goods, oral care, beverage and general purpose folding carton industries.

SPG operates five facilities in North America, including London, ON, Baldwinsville, NY, Greensboro, NC, and Kansas City and Lenexa, KS. The company targets medium to long runs of paperboard packaging for high-end graphically complex products in the consumer products segments. Thomas Garland, president and CEO of PaperWorks, will have the same role in the combined company. Carlton L. Highsmith, president and CEO of SPG, will serve as vice-chairman of the combined company.

PaperWorks is the result of the two mills spun off during the Graphic Pack aging/Altivity merger in 2008. It has re-organized its product line under the brand name MasterWorks which includes calipers ranging from 16 to 38 pt with each product offering a different set of attributes and assets.

www.paperworksindustries.com, www.spgroup-inc.com.

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