Jay paper mill's owner may soon have a new owner itself
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The Pixelle paper mill in Jay, acquired by the company two years ago, now belongs to a new investment firm.
The company that two years ago bought the former Verso paper mill in Jay after an investor revolt — and later oversaw the plant through more tumult including a series of layoffs — is itself being bought.
Pixelle Specialty Solutions Holding LLC, based in Pennsylvania, has agreed to sell to H.I.G. Capital, an alternative investment firm with offices worldwide and $48 billion in equity capital under management.
Terms were not disclosed. A news release said the deal is subject to regulatory approvals but is expected to close this quarter.
Pixelle was formed in 2018 by Lindsay Goldberg & Co. LLC, a New York private investment firm. The company acquired the Jay mill, along with one in Wisconsin, from Verso Corp. (NYSE: VRS) for $400 million in February 2020.
The sale came after Verso fought off resistance by a rebel group of shareholders who had made several takeover attempts of the company.
Two months after the acquisition by Pixelle, an explosion in a pulp digester temporarily halted operations at the Jay mill. While no one was injured, the accident led Pixelle to cut 177 jobs — more than a third of the plant’s 500-employee workforce — and eventually to end the mill’s pulp production business.
The mill’s specialty products include bleached and natural kraft papers for food packaging, pressure-sensitive release liners and labels, packaging tapes and more. Together with the mills in Stevens Point, Wis., Spring Point, Pa., and Chillicothe, Ohio, Pixelle produces over 1 million tons of paper annually.
“Together with Lindsay Goldberg, Pixelle has developed a broad, innovative portfolio of industry-leading brands across the specialty papers and sustainable packaging markets,” said Pixelle CEO Timothy Hess in the release. “We thank Lindsay Goldberg for their partnership and look forward to our next chapter with H.I.G. Capital.”
Russell Triedman, managing partner at Lindsay Goldberg, said, “We are very pleased to have partnered with Pixelle’s management to execute on a strategic plan to position the business as a true market leader and partner of choice to its customers.
“We are especially proud to have worked with Pixelle’s management team to advance the company’s sustainability initiatives, including responsible sourcing practices, reduced energy consumption, and the continued development of environmentally friendly products. Pixelle is poised for continued success and we wish Tim and his team the best.”
According to its website, H.I.G. has acquired more than 300 businesses since its founding in 1993. The firm focuses on mid-cap companies, and does business in private equity, growth equity, real estate, debt/credit, lending and biohealth. Among H.I.G.'s current portfolio companies is Jackson Paper, a North Carolina-based manufacturer of recycled corrugated cardboard sheets and packaging.
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