SPBU is one of the largest specialty paper producers in North America, with leading positions in a diverse set of product categories including food contact papers, high speed inkjet paper, release liner, carbonless forms, envelopes, greeting cards, trade book paper and playing cards.
The business operates two integrated-to-pulp mills located in Spring Grove, PA and Chillicothe, OH, converting operations in Fremont, OH, and woodyard operations in Delmar, MD, Piketon, OH, and Washington, WV.
The acquisition of SPBU will build on Lindsay Goldberg’s experience in the paper industry, with its current investments in Crown Paper Group and Golden West Packaging Group. Lindsay Goldberg affiliate partners and respective executive leaders of Crown Paper Group and Golden West Packaging Group, Steve Klinger and Steve Strickland, are expected to be integrally involved in the investment and will join the board. Klinger, Strickland, and their management teams have a combined 150 years of working together in the paper industry building high performance businesses.
Commenting on the announcement, Klinger said, “We are energized by the opportunity to work with the talented team at SPBU and look forward to working with management and union members to enhance the competitiveness of these mills. During the evaluation process we identified multiple opportunities for the investment of capital in the mills, designed to increase efficiency and productivity. We are proud of our track record of engaging employees, embracing safe work practices, minimizing our environmental footprint, partnering with communities in which we operate, and building high performance paper businesses that exceed customer expectations.”
The transaction is expected to close during the fourth quarter of 2018, subject to satisfaction of customary closing conditions including regulatory approvals.