PaperWorks Industries to merge with Specialized Packaging Group to form third-largest integrated coated-recycled board company in U.S.

BOCA RATON, Florida , July 15, 2009 (press release) – Sun Capital Partners, Inc., a leading private investment firm specializing in leveraged buyouts and investments in market-leading companies, today announced that its affiliate, PaperWorks Industries, Inc. (“PaperWorks”) will merge with The Specialized Packaging Group (“SPG”) to form the third largest integrated coated-recycled board company in the U.S. Terms of the transaction were not disclosed.

PaperWorks was formed in September 2008 as a vehicle to purchase two paper mills located in Philadelphia, PA and Wabash, IN, which together produce about 300,000 tons of 100 percent clay-coated, recycled paperboard annually. PaperWorks serves such industries as frozen foods, household goods, oral care and beverages.

The Specialized Packaging Group operates five facilities in North America, including London, Ontario, Baldwinsville, NY, Greensboro, NC, Kansas City, KS and Lenexa, KS. The Company targets medium to long paperboard packaging runs for high-end graphically complex products in the following consumer products segments: dry laundry detergent, oral care, surface care, personal care, home storage and pet care.

“The paper and packaging industry is currently in transition, and we believe that a well positioned competitor with strong capitalization will be successful in the current environment,” said Brian McGee, Vice President, Sun Capital Partners. “The strategic objective in building an integrated packaging company was not only to grow organically but also through further add-on acquisitions. The merger with The Specialized Packaging Group is an important next step toward that goal.”

Sun Capital brings extensive operational experience and expertise to the paper and packaging industry, having previously developed companies in this sector, including: Exopack Holding, a North American flexible packaging converter and provider of paper and plastic packaging solutions for various industries; and VeriPlast Solutions, a manufacturer of a large range of packaging products for use in the food, drink, health and home and personal care sectors.

Sun Capital puts strong emphasis on in-house operational expertise and partners closely with management teams in their efforts to grow the mid-sized companies its affiliates acquire and to improve their operations. Sun Capital has a team of 43 operations experts – over 25 percent of its entire staff – who are solely focused on supporting, mentoring, and adding value to portfolio companies.

Mesirow Financial, Inc. served as exclusive financial advisor to PaperWorks in connection with this transaction.

About Sun Capital Partners, Inc.

Sun Capital Partners, Inc. is a leading private investment firm focused on leveraged buyouts, equity, debt, and other investments in market-leading companies that can benefit from its in-house operating professionals and experience. Sun Capital affiliates have invested in and managed over 205 companies worldwide with combined sales in excess of $40.0 billion since Sun Capital’s inception in 1995. Sun Capital has offices in Boca Raton, Los Angeles, and New York, as well as affiliates with offices in London, Paris, Frankfurt, Shenzhen, and Shanghai. Sun Capital has been one of the most active private investment firms in the U.S., closing 161 transactions from 2002 through 2008, including 30 acquisitions in 2005, 33 transactions in 2006, 39 transactions in 2007 and 26 transactions in 2008 and was the recipient of the Buyouts Magazine’s “Turnaround of the Year - 2009” and the M&A Advisors’ “Private Equity Firm of 2008” award. For more information, please visit

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