A leading producer of flexible packaging materials for applications in the food packaging, health care and industrial markets. The Company’s products are used to form standup pouches, single-use packets, composite tubes and cans, flexible lids, disposable medical non-wovens, labels and release liners for various blue-chip customers as well as private label food manufacturers.
Brookwood Associates advised majority shareholder CGW Southeast Partners (“CGW”) on the sale of Jen-Coat to Wellspring Capital Management (“Wellspring”), a New York-based private equity firm.
Engagement Process and Outcomes
The Situation – The Jen-Coat situation was exceptionally complex, as the Company served five distinct end markets with multiple products and hundreds of SKUs. In addition, the business faced historical earnings volatility, capital intensive operations and commodity price exposure in resin, foil and paper.
Brookwood Process – The marketing materials emphasized the substantial progress made by Jen-Coat in improving manufacturing efficiency and focusing on its highest value market sectors. This historical record was augmented by a compelling strategy for future growth, both organic and via acquisitions.
Excellent Outcome – Brookwood’s marketing process generated substantial interest from an international group of both strategic and financial buyers – resulting in an ideal buyer that understood the value of the Company’s platform and achieved a premium valuation for shareholders and management.
Press Release Excerpt
We are pleased to announce that Brookwood Associates advised Jen-Coat, Inc., and its private equity investors CGW Southeast Partners and Newstone Capital Partners, on the sale of the Company to Wellspring Capital Management. Jen-Coat is a leading producer of flexible packaging materials for applications in the packaged food, consumer, medical and industrial end markets. The Company’s products are used to form standup pouches, single-use packets, composite tubes and cans, flexible lids, disposable medical non-wovens, labels and release liners.
The transaction yielded an attractive outcome for the shareholders and management, including a new sponsor partner interested in driving further industry consolidation. This transaction represents the third assignment that Brookwood has completed for Jen-Coat and the fifth assignment that Brookwood has completed on behalf of CGW Southeast Partners. This transaction also extends Brookwood’s successful track record with leading manufacturing companies in general and packaging companies in particular.