Atlantic Packaging Products Ltd. officially announced the creation of a new joint venture sheet feeder located in Carol Stream, Illinois (a suburb of Chicago). The new joint venture, BlackHawk Corrugated will be co-owned and operated by Atlantic and its JV partner StandFast Packaging of Addison, Illinois. Atlantic’s investment in BlackHawk will exceed $40 million and create in excess of 100 new jobs in the region. BlackHawk is expected to be fully operational by late 2015.
“As a privately held company with a strong balance sheet and a history of successfully green fielding our own paper mills and corrugated plants in Canada, Atlantic is prepared to move quickly and offer new JV opportunities to independent box plants across several US regions that will create multiple profit centers for our partners and a clear path to full vertical integration that the traditional sheet feeder models simply cannot support,” said Dave Boles, President at Atlantic. “We are not just looking for sheet supply contracts, but are also seeking to build true partnerships that will thrive and grow with us in the US markets.”
Given the rapid consolidation trends currently occurring in the US and Canadian corrugated packaging markets, Atlantic’s expansion into several competitive US markets is a critical part of its long-term growth strategy. Atlantic has chosen G2 Capital Advisors LLC of Boston, Massachusetts as its exclusive strategic advisor to lead the execution of its US growth initiative. Chicago is the first of several joint venture initiatives that Atlantic is currently in the process of developing across the Midwest and Northeastern regions of the US.
“We have spoken with a significant number of independent box plants located across the Midwest and Northeast and there is clearly an appetite for them to secure their long-term paper supply with a reputable, quality supplier who offers competitive market pricing,” said Jeffrey Unger, CEO at G2 Capital Advisors. “Additionally, those business owners we have spoken to who have a more sophisticated understanding of the markets and a well-defined growth strategy are intrigued by what Atlantic can offer them; a true long-term partnership with an investment model that can expedite and support their growth through multiple profit centers, beyond just sheet supply, in times of economic uncertainty within these markets.”