Marcal in Discussions to Sell New Jersey Tissue Mill
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Highland Capital Management LP, Dallas, Texas, USA, reportedly is closing in on a deal to sell Marcal Paper Mills, Elmwood Park, N.J., to Atlas Holdings LLC, a Greenwich, Conn.-based private equity fund. In 2008, Highland Capital bought the struggling tissue producer from the founding Marcalus family, which had run the mill since its beginnings in 1932.
In an article this week in North Jersey.com, Fred Smagorinsky, CEO of Marcal, said that his company was in "serious discussions" with Atlas Holdings, but did not comment further. In 2008, Marcal hired Tim Spring, a veteran turnaround specialist, as CEO. Spring rebranded Marcal's product line as "Small Steps" as part of a $30 million marking campaign built around the company's use of recycled paper. But Spring left after 21 months, and Smagorinsky replaced him in November 2010, shortly after the company sold its Chicago specialty packaging operation.
The sale would be the latest step in Marcal's effort to rebuild itself after filing for bankruptcy in November 2006, blaming high energy costs. The company reported liabilities of $156 million and assets of $100 million, according to the North Jersey.com article.
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