Altamont Capital Partners has acquired Specialized Packaging Group, a maker of protective packaging. The seller was company founder Paul Gaulin. No financial terms were disclosed. As part of the deal, Gaul is retiring as president and CEO of SPG.
PALO ALTO, Calif. and LIVERMORE, Calif. and MONTREAL, Jan. 6, 2021 – Altamont Capital Partners (“Altamont”) today announced that it has acquired Specialized Packaging Group, Inc. (“SPG” or the “Company”), one of the largest independent manufacturers of protective packaging in North America, from Paul Gaulin, the Company’s Founder. As part of the transaction, Mr. Gaulin is retiring as President and CEO of SPG, but will remain a member of the Board of Directors and a minority investor in the business.
SPG is a vertically-integrated provider of protective packaging products that operates under two divisions, IVEX and Engineered Packaging. IVEX, which has six facilities in the U.S., Canada and Mexico, manufactures a range of packaging materials, including polyethylene foam and other protective packaging products. Engineered Packaging, which is comprised of Induspac and Estapack, designs and manufactures customized packaging solutions at eight facilities in the U.S. and Mexico using a variety of materials, including polyethylene foam, corrugated cardboard and wood.
In conjunction with the announcement, Altamont Senior Advisor Pete Lane joins SPG as Executive Chairman. Bob Lally has joined the Company as President of Engineered Packaging, having served most recently as President of TransPak, and Sean Condon is continuing in his role as President of IVEX. Additionally, joining the Board of Directors will be Mark Burgess, who currently serves as CEO of Mauser Packaging Solutions.
“SPG is an established leader in the highly attractive protective packaging segment, and we are delighted to partner with the team to build on the Company’s strong foundation and track record of success,” said Randall Eason, a Managing Director at Altamont. “Together, we are confident that we will drive value for SPG’s customers, employees and other stakeholders in the months and years to come.”
“We look forward to working closely with Bob, Sean and Pete to implement an ambitious growth strategy that will include enhancements and additions to SPG’s product offerings, footprint expansion, and, potentially, acquisitions,” added Chase Beeler, a Principal at Altamont.
“This announcement is a testament to the strength of our platform and the dedication of our team over the past decades,” said Mr. Condon. “Altamont shares our commitment to delivering high quality products and superior customer service, while investing in and growing our team and will be a true partner as we execute on our strategic objectives. As we enter this next chapter in the Company’s growth trajectory, we thank Paul for his many contributions and will continue to benefit from his expertise through his role on the Board.”
Mr. Lally added, “I am pleased to join this talented organization and eager to partner with Pete, Sean and the Altamont team to establish a leading protective packaging platform. As we continue to innovate packaging solutions to meet the needs of today’s economy and supply chains, now represents an opportune time to partner with Altamont to take our business to the next level. Leveraging Altamont’s experience, relationships and resources, I am confident that the Company is poised for continued growth.”
“The business is in great hands, and I am very proud and excited to remain a partner and contributor in the years to come,” said Mr. Gaulin, “Additionally, I would like to extend my personal gratitude and appreciation to all of our employees, clients, suppliers and partners, past and present, who have supported me and the business over the last 40 years. Finally, I would like to thank Altamont and look forward to this partnership with a world-class organization.”
Terms of the transaction were not disclosed. Baird and Raymond James & Associates, Inc. acted as financial advisors and Ropes & Gray served as legal counsel to Altamont on this transaction. Raymond Chabot Grant Thornton acted as exclusive financial advisor, and BCF Business Law and Morency, Société d’avocats, LLP served as legal counsel to SPG. Financing for the transaction was provided by Monroe Capital and Churchill Asset Management.
About Specialized Packaging Group
Specialized Packaging Group, Inc. is a vertically-integrated provider of protective packaging products and one of the largest independent manufacturers of protective packaging in North America. The Company operates under two divisions, IVEX and Engineered Packaging. IVEX manufactures a range of packaging materials at six facilities across the U.S., Canada and Mexico, and Engineered Packaging, which is comprised of Induspac and Estapack, designs and manufactures customized packaging solutions at eight facilities in the U.S. and Mexico.
About Altamont Capital Partners
Altamont Capital Partners is a private investment firm based in the San Francisco Bay Area with more than $2.5 billion of assets under management. Altamont is focused on investing in middle market businesses where it can partner with leading management teams to help its portfolio companies reach their full potential. The firm’s principals have significant experience building business success stories across a range of industries, including business services, healthcare, consumer/retail, industrials, and financial services.