Mar 29, 2023

Capstone Partners Advised Paterson Pacific Parchment Company on its Sale to Hoffmaster Group, Inc.

Capstone Partners advised Paterson Pacific Parchment Company, a leading converter of paper-based foodservice products, on its sale to Hoffmaster Group, Inc., a portfolio holding of Wellspring Capital Management. Terms of the deal were not disclosed.

Paterson Pacific Parchment Company, founded in 1923 and headquartered In Sparks, Nevada, produces baking cups, printed napkins, printed sandwich wrap, bakery pan liners, and related paper products for many industry-leading brands in food service, restaurants, and other consumer-facing markets. The company’s products also offer Kosher and GMP certification.

“On behalf of the Paterson team, we look forward to joining the Hoffmaster organization,” said Joe Buckley, President of Paterson Paper. “This next chapter will be one of accelerated growth with a continued and dedicated focus on servicing our customers.”

The merging of these two businesses is a classic example of a synergistic combination; the integration will produce many operational and customer-facing benefits. Capstone foresees additional strategic alignments in the packaging space as businesses seek to maintain growth rates achieved over the past few years.

David BenchCo-Head of Industrials & Managing Director, Capstone Partners

“This is an important acquisition for Hoffmaster as we bring together two leaders in the premium foodservice disposables category,” said Rory Leyden, CEO of Hoffmaster Group, Inc. “We are looking forward to the opportunities that will result from the combined strengths of the two companies. Paterson’s Nevada location increases access to the West, strengthening our national footprint. This partnership enables us to continue our exceptional service with expanded capabilities to our combined customer base.”

Hoffmaster Group Inc. is a manufacturer of premium foodservice disposables that offers a complete line of premium disposable paper tableware items for restaurants, hospitals, and a wide variety of other service industries. The company, established in 1947, is the platform company for the Hoffmaster Group, Inc.® Foodservice Division.

This represents another successful transaction in the converting space for Capstone Partners Industrials Investment Banking team, who work with leading middle market companies operating in the Packaging market. Our firm has developed a full suite of corporate finance solutions, including M&A advisory, debt advisory, financial advisory, and equity capital financing to help privately owned businesses and private equity firms address any need, ranging from growth and financial or operational advisement to an ultimate exit transaction. To learn more about this transaction, or about the benefits of starting a relationship with our Industrials Banking Team, contact us here.