Lindsay Goldberg, New York, N.Y., USA, has acquired the Specialty Papers Business Unit of P. H. Glatfelter Co., York, Pa., for $360 million, and rebranded it as Pixelle Specialty Solutions. 

Cash proceeds from the sale were approximately $323 million, reflecting estimated purchase price adjustments as of the closing date and the assumption by the purchaser of approximately $38 million of retiree healthcare liabilities. The purchase price is subject to a customary post-closing working capital adjustment as well as an adjustment for the final measurement of retiree healthcare liabilities. In addition, the purchaser assumed approximately $220 million of pension liabilities relating to Specialty Papers’ employees and will receive approximately $270 million of related assets from the company’s existing pension plan. 

Pixelle Specialty Solutions is one of the largest specialty paper producers in North America. It maintains industry-leading positions in food contact papers, high speed inkjet papers, release liner, carbonless forms, envelopes, greeting cards, trade book paper, and playing cards.  

 

Pixelle Specialty Solutions operates two integrated mills (Spring Grove, Pa., and Chillicothe, Ohio), converting operations (Fremont, Ohio), and woodyard operations (Delmar, Md., Piketon, Ohio, and Washington, W.Va.).  

 

Lindsay Goldberg is a private investment firm managing $13 billion of equity capital that focuses on partnering with families, founders, and management teams seeking to actively build their businesses. Lindsay Goldberg is currently invested and building value in Crown Paper Group, Atlanta, Ga., (and subsequent acquisition Montebello Container, Los Angeles, Calif.,) and Golden West Packaging Group, Sacramento, Calif. (and subsequent acquisition Fleetwood-Fibre Packaging, City of Industry, Calif.). Affiliate Partner Steve Klinger and his management team have a combined 150 years working together in the paper industry at Georgia-Pacific, Smurfit-Stone, Crown Paper Group, and Golden West Packaging Group.

   

Klinger will serve as chairman of Pixelle Specialty Solutions. Commenting on the acquisition,  he said that "we are extremely excited by the opportunity to work with Pixelle to build on its great reputation with customers and strengthen its leading market position. The value we bring to Pixelle is our differentiated, customized approach to manufacturing. We are in an extremely competitive paper industry that requires mills to be efficient, productive, and low cost. We know how to drive operational efficiencies by engaging employees and simultaneously working safely and minimizing environmental footprints. We have already identified numerous investments to improve efficiency and productivity, and we are ready to begin executing."   

  

Tim Hess will continue in his role as president of Pixelle Specialty Solutions. Commenting on the opportunity ahead, he said that "Pixelle has an excellent reputation with our customers, category leading products and an experienced work force. Lindsay Goldberg is well-known for its long term approach to building high-performance businesses. We are highly energized to combine Lindsay Goldberg’s expertise with our leading portfolio of products to continue to exceed customer expectations."