Babson Capital Management said Monday it provided debt and made an equity co-investment to support Dunn Paper Inc.’s buy of the Specialty Mills business from Clearwater Paper Corp. Financial terms weren’t announced. The deal includes five Clearwater Paper mills. Dunn Paper is a portfolio company of Wingate Partners.
CHARLOTTE, N.C. (April 20, 2015) – Babson Capital Management, a global asset management firm with more than $217 billion in assets under management, today announced it provided subordinated debt and made an equity co-investment to support Wingate Partners portfolio company Dunn Paper Inc. in its acquisition of the Specialty Mills business from Clearwater Paper Corporation (NYSE: CLW).
The acquisition includes five Clearwater Paper mills, which aligns well with Dunn Paper’s strategy of providing market leading, high value specialty paper for niche product applications. The acquisition expands Dunn Paper’s product offerings with the addition of the Specialty Mills’ strong market positions in specialty napkins and tissues and food packaging paper.
“Wingate Partners is delighted to collaborate with Babson on this significant add-on investment by Dunn Paper,” said Bud Applebaum, partner at Wingate Partners.
“Wingate views Babson’s deep expertise in the middle market and its partnership-oriented approach to investing as true differentiators, and we look forward to working with the Babson team on this investment as well as future opportunities.”
“Babson is excited to work with Wingate Partners on the acquisition of the Specialty Mills, which, when combined with Dunn Paper, create a specialty paper business with unmatched products and capabilities,” said Mike Klofas, Managing Director and co-head of Babson’s U.S. Private Finance Group. “We have a high degree of confidence in supporting the Dunn Paper management team, and we see tremendous upside in the growth opportunities with Dunn Paper’s existing customers as a result of their broader product offering.”
About Dunn Paper
Dunn Paper Inc. is a leading specialty paper manufacturer with customers worldwide. The company produces a wide array of specialty waxed, coated, and uncoated MG papers used in various food packaging and specialty label applications. The company is located in Port Huron, Mich., approximately 60 miles north of Detroit. For more information, visitwww.dunnpaper.com.
About Wingate Partners
Wingate Partners (www.wingatepartners.com) was founded in 1987 to purchase controlling equity investments in manufacturing, distribution and services businesses. Wingate Partners’ philosophy is to create value by supporting management in their efforts to improve the operations of its portfolio companies. The Partners of Wingate have had substantial senior-level operating experience and extensive careers in acquiring companies.
For more information on Wingate Partners, visit www.wingatepartners.com.
About Babson Capital Management
Babson Capital Management LLC (Babson) is a leading global asset management firm with over $217 billion in assets under management as of March 31, 2015. Through proprietary
research, analysis and a focus on investment fundamentals, the firm and its global affiliates develop products and strategies that leverage its broad expertise in global fixed income, structured products, middle market finance, commercial real estate, alternatives and equities. A member of the MassMutual Financial Group, Babson maintains a strong global footprint with operations on four continents and clients in over 20 countries. Learn more at www.babsoncapital.com