Lindenmeyr Munroe acquired Paterson Papers via strategic-only process, source says

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Lindenmeyr Munroe acquired Paterson Papers via strategic-only process, source says

by Marlene Givant Star, US editor sector coverage, Mergermarket and Dealreporter

Lindenmeyr Munroe, a subsidiary of the family-owned pulp and paper giant Central National-Gottesman, acquired New Jersey-based Paterson Papers through a quick, strategic-only sale effort, said Alan Scharfstein, president of DAK Group, which advised the seller.

Paterson Papers is a 107-year-old distributor of fine paper products, including copy paper, and was also family-controlled.

The boutique investment bank has been a long-time strategic advisor to Paterson, Scharfstein said, and after witnessing heavy consolidation in the fine paper market, the company decided “it was a good time to take advantage,” he said.

DAK ran a very focused and limited process, targeting only strategic players, he said. “It was a very fast process. It took 90 days,” he said. Terms of the deal were not disclosed and Scharfstein would not disclose revenue figures or employee counts of the two companies. Parent company Central National-Gottesman, headquartered in Purchase, New York, is a leader in the pulp, paper and forest products industry, with revenue exceeding USD 6.8bn and offices in 29 countries.

From the outset, Lindenmeyr was at the top of Paterson’s list of suitors, he said, based on its active consolidation strategy. Lindenmeyr, which did not respond to an interview request, says it is the largest independent paper packaging supplier in the US. The company has made a slew of acquisitions in recent years, including the January purchase of Maine Shipping and Packaging Supply, expanding its presence in the Maine market; and the February 2020 purchase of Wilcox Paper, an independent paper merchant based in Champlin, Minnesota. Terms were not disclosed.

The fine paper market has been struggling for many years due to the widespread use of online tools instead of photocopy and printer paper, and the shift to email and Internet marketing from traditional direct mail.

Scharfstein said Lindenmeyr is picking up “an exceptional customer base” with the acquisition of Paterson, and its operations can be plugged right into the company’s existing facilities. “Paterson is a multi-generation company with a very loyal customer base,” he added. In addition to fine paper, Lindenmeyr offers paper used for packaging and janitorial and sanitation products.

There were no lenders on the deal, Scharfstein confirmed.


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