Wellspring Capital Management LLC has completed its acquisition of SupplyOne Inc., a packaging distributor targeting the food and beverage industries. The deal comes as grocers are seeking businesses that keep costs low and drive supply chain efficiency in today’s ever-evolving grocery industry. The sector has been coupled with increased competition and competitive pricing on the heels of Amazon.com Inc.’s (Nasdaq: AMZN) $13.7 billion purchase of Whole Foods.
SupplyOne was founded in 1998 and serves middle-market suppliers to the food and beverage, manufacturing, consumer products, e-commerce and healthcare industries. The Newtown Square, Pennsylvania-based target distributes corrugated products, pressure-sensitive labels, plastic thermoforming trays and clams, janitorial and sanitary supplies across the U.S. Financial terms of the deal were not disclosed.
“There are strong industry tailwinds for SupplyOne’s core products and industry-leading packaging programs,” states Wellspring partner Matthew Harrison. “SupplyOne is exceptionally well positioned to capitalize on these compelling trends. We look forward to partnering with the SupplyOne management team, led by Bill Leith, to pursue a range of growth opportunities, including internal initiatives and select acquisitions.”
Headquartered in New York, Wellspring is a middle-market private equity fund that has raised more than $4 billion in capital since its inception in 1995. The firm has invested in more than 35 platform investments across a variety of industries. Wellspring looks to partner with strong management, and has previously invested in Checkers Drive-In Restaurants Inc., Paragon Trade Brands Inc. and Residential Services Group Inc. In 2016, the PE firm acquired tableware maker Hoffmaster Group Inc. from Metalmark Capital.
Other middle-market packaging deals include: Apax Partners’ acquisition of Tosca Services LLC; ProAmpac’s purchase of PolyFirst Packaging; Dade Paper & Bag Co.’s agreed to merge with Imperial Bag & Paper Co. LLC; Sabert Corp. is buying of Mullinix Packages Inc. from Mason Wells; and Sonoco’s (NYSE: SON) deal to purchase Clear Lam Packaging Inc. Paul Weiss Rifkind Wharton & Garrison LLP served as legal counsel to Wellspring on the deal.