Transaction combines multiple successful family-owned paper and packaging companies
IRVINE, CALIF. – 555 Capital Advisors, LLC today announced that triPAQ, Inc. (triPAQ), a manufacturer of custom-designed packaging products, has been acquired by New-Indy JV Corp. (New-Indy), a joint venture of premier paper and packaging companies. As exclusive financial advisor to triPAQ, 555 Capital initiated the transaction and assisted with negotiations.
triPAQ produces custom-corrugated packaging at manufacturing facilities in Cerritos, Calif.; Santa Ana, Calif.; and, Mexicali, B.C. The company was formed recently through the combination of three longstanding southern California-based packaging companies: Triple A Containers, McDonald Packaging (“rightPAQ”) and Award Packaging. Brad McCroskey, CEO and co-chair of triPAQ, Inc., will continue to oversee the company’s operations and growth under its new ownership.
“When we initiated a roll-up strategy by merging Triple A and rightPAQ eighteen months ago, we didn’t anticipate such a quick exit,” noted McCroskey. “555 Capital’s recent sales of other paper and packaging companies made us realize there is a strong market today, so we decided to move quickly. 555 Capital delivered the right buyer at a great valuation for us.”
New-Indy is a 50/50 joint venture between the Kraft Group and Schwarz Partners, holding companies with substantial experience and investments in the paper and packaging industry. Acquiring triPAQ expands New-Indy’s operations in Southern California and Mexico with a diverse mix of custom corrugated and specialty packaging capabilities. The synergistic acquisition will further integrate New-Indy’s mills in Ontario and Oxnard, Calif.
“The transaction combines successful family-owned paper and packaging companies known for their exceptional service and high-quality products,” commented Andre Guardi, senior managing director of 555 Capital. “The industry is quickly consolidating, with multi-generational family-owned businesses selling to national and international corporate buyers, as well as to investor groups."
The sale of triPAQ is 555 Capital’s third successful paper and packaging transaction in the past 15 months. The other two transactions were the sale of Scope Packaging to Smurfit Kappa North America LLC in March 2016, and the sale of Montebello Container Corporation to Crown Paper Group in September 2015.
"Strategic buyers are seeking strong operators in the western U.S.,” noted Guardi. “They are particularly attracted to southern California, the most lucrative corrugated cardboard market in the world. Acquisitions allow them to quickly grow through vertical-integration and additional capabilities, customers and products.”
About 555 Capital Advisors, LLC
555 Capital Advisors is an independent investment bank that provides M&A, capital raise and strategic advisory services to middle-market companies in the business services, consumer, healthcare, manufacturing and technology sectors. Clients appreciate our thoughtful approach to guiding them through a transaction. We take care in applying 25 years of experience to help middle-market business owners clarify and fulfill their goals. For more information, contact us at 949-328-7255 or visit www.555capitaladvisors.com.
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