Wellspring Capital Management LLC has agreed to purchase tableware manufacturer Hoffmaster Group Inc. from private equity firm Metalmark Capital for an undisclosed amount. The buyer plans to grow the target through acquisitions.
Oshkosh, Wisconsin-based Hoffmaster makes and sells disposable tableware products for food service distributors, retail stores and grocery stores across North America. The target’s products include decorative napkins, guest towels, paper plates, tray mats, pre-wrapped cutlery and table covers. Hoffmaster CEO Rory Leyden will continue to lead the business. Hoffmaster plans to expand the company’s product line.
Headquartered in New York, Wellspring is a middle market private equity fund with more than $3 billion in capital. The firm has approximately 14 portfolio companies and has previously invested in Checkers Drive-In Restaurants Inc., Paragon Trade Brands Inc. and Residential Services Group Inc.
Metalmark Capital, also based in New York, is a private equity firm with nearly $3.7 billion in capital commitments. The firm targets the energy, healthcare, industrials and food sectors.
Some other houseware and tableware deals include: Endeavour Capital’s backing of Pacific Market International LLC to purchase Formation Brands LLC, a distributor of houseware such as coffee mugs and glasses; GP Investments Acquisition Corp.’s (Nasdaq: GPIA, GPIAW, GPIAU) agreement to buy houseware brand manufacturer World Kitchen LLC for approximately $566 million in stock and cash; and in 2015, private equity-backed Taylor Precision Products Inc. bought Chef’n Corp, a maker of kitchen tools and baking equipment among other household products.
Paul Weiss Rifkind Wharton & Garrison LLP is acting as legal counsel for the deal. The deal is expected to close by the end of November 2016.