Jen-Coat 2010

Jen-Coat, Inc. (“Jen-Coat” or the “Company”) is 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.

Transaction Summary

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.