Advent International has agreed to buy a majority stake in Fort Dearborn Company, an Illinois-based maker of decorative labels for the consumer goods sector. The seller is KRG Capital Partners. No financial terms were disclosed for the transaction that’s expected to close in the third quarter of this year. UBS Investment Bank is providing financial advice to Fort Dearborn on the deal while Citigroup is doing likewise for Advent.
NEW YORK and ELK GROVE, Ill., Aug. 11, 2016 /PRNewswire/ — Advent International, one of the largest and most experienced global private equity investors, today announced that it has agreed to acquire a majority ownership interest in Fort Dearborn Company (“FDC”), a leading North American supplier of high-impact prime labels for the consumer goods industry, from KRG Capital Partners. Fort Dearborn’s management team will retain a minority stake in the company and continue to lead the business following the completion of the transaction. Financial terms were not disclosed. The acquisition is subject to customary closing conditions and is expected to be completed in the third quarter of 2016.
“We are pleased to welcome Advent as our new investment partner as we pursue our strategy of providing industry-leading prime label products and services,” said Jeff Brezek, President and Chief Executive Officer of Fort Dearborn.
“With Advent’s deep resources and global expertise, we will continue to invest in all aspects of our business to provide superior label solutions for our customers and ongoing opportunities for our associates.” Mr. Brezek added, “I would also like to thank KRG Capital for all their support over the last six years in helping Fort Dearborn evolve and grow to where we are today.”
Founded in 1925, Fort Dearborn is the third-largest supplier of prime labels in North America, serving consumer packaged goods customers in the food, beverage, spirits, paint and coatings, household products, personal care and private label/retail markets. The company holds market-leading positions in several label technologies and offers a variety of value-added services to its customers. Headquartered in Elk Grove, Illinois, Fort Dearborn employs approximately 1,675 associates across 15 manufacturing facilities in the U.S. and Canada.
“Fort Dearborn is a leading player in the large, fragmented labels market with a differentiated culture and customer service model,” said Kevin Feinblum, a Managing Director at Advent. “The company has completed four acquisitions since 2013, and we believe it is well-positioned to add further capabilities to better serve its customers. We look forward to working with FDC’s management team to pursue these growth opportunities.”
“Since our partnership with Fort Dearborn’s management began in August 2010, FDC has dramatically expanded its service capabilities through a combination of organic initiatives and strategic acquisitions,” said Chris Lane, Managing Director at KRG. “Through these initiatives, the associates of Fort Dearborn have done an outstanding job expanding their market leadership position. We believe Advent will be a great partner to help Fort Dearborn continue to enhance its market-leading service capabilities.” The sale of Fort Dearborn represents the seventh exit in KRG’s Fund IV.
UBS Investment Bank is serving as financial advisor and Hogan Lovells is serving as legal advisor to Fort Dearborn on the transaction. Citigroup is serving as financial advisor and Kirkland & Ellis is serving as legal advisor to Advent.
ABOUT FORT DEARBORN COMPANY
Fort Dearborn Company is a leading supplier of high-impact decorative labels for the beverage, food, household products, paint and coatings, personal care, private label/retail and spirits markets. Headquartered in Illinois, the company has 15 manufacturing facilities in North America, employing approximately 1,675 associates. For more information, visit www.fortdearborn.com.
ABOUT ADVENT INTERNATIONAL
Founded in 1984, Advent International is one of the largest and most experienced global private equity investors. The firm has invested in more than 300 private equity transactions in 40 countries and as of March 31, 2016, had $42 billion in assets under management. With offices on four continents, Advent has established a globally integrated team of over 180 investment professionals across North America, Europe, Latin America and Asia. The firm focuses on investments in five core sectors, including business and financial services; healthcare; industrial; retail, consumer and leisure; and technology, media and telecom. After more than 30 years dedicated to international investing, Advent remains committed to partnering with management teams to deliver sustained revenue and earnings growth for its portfolio companies. For more information, visit www.adventinternational.com.
ABOUT KRG CAPITAL PARTNERS
Founded in 1996, KRG is a Denver-based private equity buyout firm with $4.4 billion of cumulative capital either deployed or available for future investment, which includes approximately $1.2 billion deployed since inception by institutional equity co-investors. The Firm seeks investment opportunities for its partners where KRG can work in concert with owners and operating managers who are committed to expanding their companies and becoming industry leaders. The result is a partnership that focuses on creating a significantly larger enterprise through a combination of internal growth and complementary add-on acquisitions. More information on KRG is available at www.krgcapital.com.