Sentinel Capital Partners has sold Nekoosa to Appvion, a portfolio company of Wynnchurch Capital
Nekoosa
Headquartered in Nekoosa, Wisconsin, Nekoosa produces a comprehensive suite of specialty engineered materials in four key product areas: application and pressure sensitive tapes used to protect and transfer graphics onto surfaces such as store windows and commercial vehicles; synthetic papers that offer a digitally printable tear-and-water-proof alternative to lamination; sheeted digital and offset grade carbonless paper; and extruded film products used in wall panel, credit card and lighting applications. Through a network of more than 1,000 global distributor partners, Nekoosa serves a highly diverse base of more than 70,000 commercial print and graphics shops in 65 countries. For more information, please visit www.nekoosa.com.
The Deal
Under Sentinel Capital Partners’ ownership, Nekoosa completed two successful add-on acquisitions, became the market leader in an additional product segment, gained significant market share in a new product offering, bolstered the management team and integrated cutting-edge technology systems to successfully complete the “One Nekoosa” platform. Sentinel was seeking liquidity on its investment in Nekoosa based on the achievement of investment objectives. Sentinel turned to Lincoln International to execute a competitive and successful process given Lincoln’s familiarity with the company, Nekoosa’s management team and the specialty engineered materials industry. Lincoln led the marketing, diligence and negotiation process, driving competitive tension throughout the transaction.
Scott Perry, Partner at Sentinel, commented, “Lincoln’s guidance, market knowledge and diligent pursuit in finding Nekoosa the optimal partner was crucial in creating an exceptional outcome for both the shareholders and management. We’re proud to have worked with such an accomplished Nekoosa team and look forward to witnessing their future success.”
Appvion, Inc. is a leading provider of specialty and high-performance direct thermal coatings for label and film solutions as well as renewable, fiber-based consumer and industrial packaging solutions. Appvion targeted Nekoosa to add highly complementary products with market-leading positions, gain additional highly attractive distributor relationships and further penetrate existing markets, while also adding new applications.
Our Perspective
Luke Webb, Managing Director in Lincoln’s Industrials Group who leads packaging, commented, “The Nekoosa transaction is another example of our in-depth market knowledge in specialty materials / packaging in combination with our hands-on approach to be market ready while crafting a highly compelling investment thesis. Nekoosa is a true market leader with a best-in-class product offering and leadership team. The new partnership with Appvion uniquely positions Nekoosa to accelerate growth while expanding its position as a market leader.”
Sentinel
Sentinel specializes in buying and building middle market businesses in the United States and Canada in partnership with management. Sentinel targets aerospace and defense, business services, consumer, distribution, food and restaurants, franchising, healthcare and industrial businesses. Sentinel invests in management buyouts, recapitalizations, corporate divestitures, going-private transactions and structured equity investments of established businesses with EBITDA of up to $80 million. Sentinel also invests in special situations, including balance sheet restructurings, operational turnarounds and minority junior capital solutions. For more information, please visit www.sentinelpartners.com.
Appvion
Based in Appleton, Wisconsin, Appvion is a pioneer in the specialty and high-performance coatings market. Appvion develops innovative, water-based and environmentally responsible coating solutions for consumers’ everyday life. Appvion’s functional coating solutions are applied to a wide variety of flexible substrates, including products from an FDA-compliant facility. Primary product offerings include direct thermal paper and film solutions and renewable, fiber-based consumer and industrial packaging solutions. For more information, please visit www.appvion.com.
Wynnchurch Capital
Wynnchurch Capital, L.P., headquartered in the Chicago suburb of Rosemont, Illinois, with offices in California, New York, and an affiliate in Canada, was founded in 1999 and is a leading middle market private equity (PE) investment firm. Wynnchurch’s strategy is to partner with middle market companies in the United States and Canada that possess the potential for substantial growth and profit improvement. Wynnchurch manages a number of PE funds with $4.2 billion of committed capital under management and specializes in recapitalizations, growth capital, management buyouts, corporate carve-outs and restructurings. For more information, please visit www.wynnchurch.com
The entire Lincoln team was focused on delivering from day one with their knowledge of the markets we serve and precise process execution. The Nekoosa team is excited about the future and thanks Lincoln for finding the ideal partner to accelerate growth.
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Any information or testimonials contained in this post may not be representative of the experience of other clients and is no guarantee of future performance or success.