ALPHARETTA, Ga. (News release) -- Dunn Paper ("Dunn") a leading manufacturer and supplier of high performance, advanced paper and tissue products for use in food, medical, and specialty markets announced today that its first lien secured lenders have acquired select assets of the company as part of a recapitalization of the business. Pursuant to this transaction, the company's name has been changed and will operate as BiOrigin Specialty Products ("BSP" or the "Company").
As previously announced, the company's Port Huron, MI mill announced the closure of operations in mid-September with production officially ceasing in mid-October.
Wade Kemnitz, President and CEO of the Company said, "I'm thrilled to be able to announce the closing of this transaction which we've been working toward for many months. I'd like to thank our customers, suppliers, and employees for their continued support and patience without which this transaction would not have been possible. BiOrigin Specialty Products is the culmination of a vision to strategically focus on our leading footprint of six ongoing mills and concentrate our future investments in the eco-friendly and innovative packaging, specialty paper, and tissue segments where we excel."
As part of the transaction, BSP's balance sheet has been completely recapitalized with only modest leverage, and meaningful balance sheet cash -- positioning the Company to capitalize on market growth and invest to serve its customers. The Company will also have access to a revolving credit facility of $60 million, agented by Wells Fargo.
The transaction was led by Wynnchurch Capital, L.P., in partnership with Bayside Capital, Inc., Arbour Lane Capital Management, L.P., and Aegon Asset Management. Brian Crumbaugh, Partner at Wynnchurch said, "We are proud to have worked alongside our fellow investors to provide a capital solution that we are confident will lead to sustainable, profitable growth. Both the new shareholders and the Company's management team share a focus on placing customer success first, working collaboratively with our suppliers, and providing a safe, rewarding work environment for our employees. We are excited to have the opportunity to partner with the BSP team to shape the Company's future strategy."
Mr. Kemnitz stated, "The team and I are excited to announce this transaction and begin a new chapter as a stronger and healthier company. The return to a low-leverage operating environment with access to growth capital will allow us to better serve our valued customers as we solve their evolving packaging and absorbent tissue needs."
About BiOrigin Specialty Products
BiOrigin Specialty Products has been a leader in paper industry innovation ever since 1924. With a focus on eco-friendly specialty paper, packaging, and tissue, BiOrigin Specialty Products is a trusted wholesale paper supplier, continuing to thrive, grow, and manufacture some of the finest sustainable paper and tissue products in North America. Visit us at www.BiOriginSP.com
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