JAY – Pixelle Specialty Solutions Holding, owner of the Androscoggin paper mill, announced Monday that it has reached an agreement to sell the Pennsylvania-based company to HIG Capital.
HIG is a leading global alternative investment firm with $48 billion in equity under management. Terms of the transaction were not disclosed, according to the announcement posted Monday on business thread.
Pixelle was founded in 2018 by Lindsay Goldberg, a private investment firm focused on partnering with families, founders and management teams looking to actively grow their businesses.
Pixelle purchased the Androscoggin plant and associated properties from Verso Corp. at the beginning of 2020.
“Pixelle has built an industry-leading four-mill specialty papers platform with mills in Chillicothe, Ohio; Jay, Maine; Spring Grove, Pennsylvania; and Stevens Point, Wis., according to the announcement.
The mills operate a total of 11 paper machines, including two at Jay, and produce more than one million tons of paper annually, the statement said.
“Together with Lindsay Goldberg, Pixelle has developed a broad, innovative portfolio of industry-leading brands in the specialty papers and sustainable packaging markets,” Pixelle CEO Timothy Hess said in the announcement. “In less than four years, we have transformed Pixelle into the leading specialty paper producer in North America through three strategic acquisitions and the successful implementation of a continuous improvement program. We thank Lindsay Goldberg for their partnership and look forward to our next chapter with HIG Capital.
“We are very pleased to have worked with Pixelle management to execute a strategic plan to position the company as a true market leader and partner of choice for its clients,” added Russell Triedman, Managing Partner at Lindsay. Goldberg. “We are particularly proud to have worked with Pixelle’s management team to advance the company’s sustainability initiatives, including responsible sourcing practices, reduced energy consumption and continuous development. of environmentally friendly products. Pixelle is poised for continued success and we wish Tim and his team the best. »
The transaction is subject to customary closing conditions, including regulatory approvals, and is expected to close in the second quarter of 2022.
Credit Suisse acted as lead financial advisor to Pixelle on the transaction. Houlihan Lokey also served as financial advisor to Pixelle. Credit Suisse and Macquarie Capital are providing committed financing in support of the transaction. Macquarie Capital and Jefferies acted as financial advisors to HIG
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