NEW YORK, Oct. 19, 2016 /PRNewswire/ -- Wellspring Capital Management LLC ("Wellspring"), a New York-based private equity firm, today announced that it has agreed to acquire Hoffmaster Group, Inc. ("Hoffmaster"), a leading North American manufacturer of disposable tableware, from Metalmark Capital. Financial terms of the agreement were not disclosed.
Founded in 1947, Hoffmaster is a leading North American manufacturer of a broad portfolio of high-end, decorative disposable tableware (napkins, plates, placemats, table covers and other products) for leading foodservice distributors, retail, grocery, mass, and club customers. The Company's products include premium napkins, plates and other disposable tableware products that create a more premium dining and entertaining experience.
John Morningstar, a Managing Partner of Wellspring who leads the firm's investment effort in the packaging sector, said, "We are pleased to acquire Hoffmaster, which is the established leader in the growing disposable tableware sector. The company is well-respected in its markets and has strong and established relationships with a diverse range of customers. We look forward to partnering with the Hoffmaster management team to capitalize on a range of attractive growth opportunities, including select acquisitions."
Matthew Harrison, a Principal of Wellspring, commented, "The addition of Hoffmaster to our portfolio is an outstanding opportunity to leverage our financial and operational resources to drive growth and build upon Hoffmaster's successful track record. We are pleased that current Hoffmaster CEO Rory Leyden and his management team, who have been instrumental in building the Company, will continue to lead the business under Wellspring's ownership."
Mr. Leyden added, "We are extremely excited about our new partnership with Wellspring, which has a long track record of supporting industry-leading businesses and management teams. In the coming years, we expect to continue to grow our business and enhance our value proposition for customers by further building out our product suite and other initiatives. We are very enthusiastic about this next chapter in Hoffmaster's history."
Completion of the transaction is expected in November 2016.
Paul, Weiss, Rifkind, Wharton & Garrison LLP is serving as legal counsel.
About Wellspring Capital Management
Wellspring Capital Management, founded in 1995, is a leading middle-market private equity firm that manages more than $3 billion of private equity capital. The firm's objective is to bring partnership, experience and value creation to each investment. By teaming up with strong management, Wellspring is able to unlock underlying value and pursue new growth opportunities through strategic initiatives, operating improvements and add-on acquisitions. The firm functions as a strategic rather than tactical partner, providing management teams with top-line support, M&A experience and financial expertise, and access to resources. For additional information, please visit www.wellspringcapital.com.
About Hoffmaster Group, Inc.
Founded in 1947, Hoffmaster Group, Inc., is a leading manufacturer and supplier of disposable tableware including paper plates, cups, napkins, decor, and more. With innovation as the cornerstone of the business' success, Hoffmaster continues to be a trendsetter, setting the standard for color, fashion, and design excellence in both its Food Service and Consumer divisions. Hoffmaster Group, Inc., is headquartered in Oshkosh, Wisconsin. For more information, visit http://www.hoffmaster.com.
Mark Semer or Ross Lovern
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/wellspring-capital-to-acquire-hoffmaster-group-300347315.html
SOURCE Wellspring Capital Management LLC