PURCHASE, N.Y., June 25, 2012 /PRNewswire/ -- Central National-Gottesman Inc. (CNG) today announced that it has signed a definitive Purchase Agreement with a subsidiary of PaperlinX Limited to acquire its U.S. paper operations, which consist of Spicers Paper, Inc. and Kelly Paper Company.
Spicers Paper, Inc., headquartered in Santa Fe Springs, California, is a major U.S. paper distributor with 12 warehouse locations in the West and Midwest. Kelly Paper, headquartered in City of Industry, California, operates a successful chain of paper stores with 48 locations across four Western states. Combined sales for both companies were approximately $500 million in the company's most recent fiscal year. The closing is expected to take place on June 30, 2012.
"Spicers and Kelly are well-managed and respected businesses, and we are thrilled to have the opportunity to acquire them," said Ken Wallach, Chairman and Chief Executive Officer of Central National-Gottesman Inc. "The existing management and staff of Spicers and Kelly have done an outstanding job. These are excellent businesses and we intend to operate both of them as they are, and under their existing brands. The Spicers and Kelly locations are a perfect compliment to our 22 Lindenmeyr Munroe paper distribution facilities and stores, located on the East Coast and in the Midwest, and will provide enhanced coverage to our customers and suppliers."
This transaction is CNG's fifth acquisition of a paper merchant in the past three years, including four in the U.S. and one overseas. It demonstrates CNG's ongoing commitment to the paper distribution business and the company's strong desire to grow, both organically and through attractive acquisition opportunities.
Founded in 1886 and headquartered in Purchase, New York, Central National-Gottesman Inc. is a leading international marketer of pulp and paper. The company has sales offices in 26 U.S. cities and 22 countries worldwide. CNG operates several divisions, including Lindenmeyr, the largest independent paper merchant in the U.S., and Central National, a global provider of pulp, paper, and packaging. CNG is committed to environmental sustainability and holds certifications from FSC, SFI, and PEFC. The company's sales of pulp and paper exceed $4 billion annually. To learn more, please visit www.cng-inc.com.
SOURCE Central National-Gottesman Inc.