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IOP exits Midwest Paper

Industrial Opportunity Partners has sold Midwest Paper to McKinley Paper, a subsidiary of Bio Pappel.

Industrial Opportunity Partners has sold Midwest Paper to McKinley Paper, a subsidiary of Bio Pappel. No financial terms were disclosed. Midwest Paper is a maker of recycled containerboard for corrugated packaging and recycled bag products.

PRESS RELEASE

Evanston, Ill., February 8, 2022 – Industrial Opportunity Partners (“IOP”), an operations-focused private equity firm based in Evanston, Ill., today announced that it has completed the sale of portfolio company Midwest Paper Group Holdings, Inc. (“Midwest Paper” or the “Company”) to McKinley Paper Company, a subsidiary of Bio Pappel S.A. de C.V. (“Bio Pappel”), a manufacturer of paper and packaging products in North and Latin America. The divestiture represents IOP’s first investment realization from its $450 million third fund, Industrial Opportunity Partners III, L.P. Terms of the transaction were not disclosed. IOP acquired Midwest Paper in December 2019.

Midwest Paper is a manufacturer of recycled containerboard for corrugated packaging and recycled bag products. The Company operates out of a 1.2 million square foot paper mill located in Combined Locks, Wisconsin.

IOP Operating Principal Dave Mackin served as Midwest Paper’s Interim CEO and Chairman of the Board, providing strategic oversight of the Company during IOP’s investment period. Mr. Mackin said, “We’re pleased with what the Company accomplished during IOP’s ownership period. The Midwest Paper team successfully executed IOP’s investment operating plan which included commercial initiatives and operational improvements that turned a once struggling paper mill into a thriving business.”

Kyle Hood, Managing Director of IOP, added, “We’re proud to have invested in a company that we believe advances environmentally friendly products, and we would like to thank the entire management team and workforce at Midwest Paper for their commitment and efforts throughout the Company’s partnership with IOP. We believe Midwest Paper is poised for continued success under Bio Pappel’s ownership.”

Deloitte Corporate Finance acted as financial advisor and McDermott Will & Emery LLP provided legal representation to IOP and Midwest Paper in connection with the sale transaction.

About Midwest Paper
Midwest Paper is a paper mill headquartered in Combined Locks, Wis. The Company manufactures and distributes various grades of paper including recycled containerboard for corrugated packaging and recycled bag products. For more information, visit Midwest Paper’s website at www.mwpaper.com.

About Industrial Opportunity Partners
IOP, an Evanston, Ill.-based private equity firm with $910 million of committed capital since inception, is dedicated to creating value through investing in manufacturing and value-added distribution businesses with sales between $50 million and $500 million. IOP focuses on businesses with strong product, customer, and market positions, and provides management and operational resources to support sales and earnings growth at its businesses. For more information, visit IOP’s website at www.iopfund.com.