Transaction overview
On December 1, 2022, Envoy Solutions, LLC completed its acquisition of Pennsylvania Paper & Supply Company (Penn Paper). Based in Scranton, Pennsylvania, Penn Paper is a century-old distributor of facilities supplies, janitorial and sanitation equipment, and industrial packaging solutions. The transaction's financial details were not disclosed, but it represents Envoy Solutions' strategic expansion into the Pennsylvania, New York, and New Jersey markets.
Deal structure and financing
The acquisition involved Envoy Solutions acquiring 100% ownership of Penn Paper with an undisclosed equity-debt split. Mufson Howe Hunter & Co., a leading middle-market investment bank, acted as the exclusive financial advisor to Penn Paper in this transaction but did not disclose any specific terms regarding leverage metrics or lock-up periods. The deal does not provide information on whether Envoy Solutions retained any stake from the sellers, nor does it specify if there is an IPO optionality.
Strategic context
Envoy Solutions, a subsidiary of Fomento Económico Mexicano (FEMSA) in Mexico, sought to expand its reach and market share through this acquisition. With the addition of Penn Paper's extensive customer base and distribution network, Envoy can better serve existing clients and penetrate new markets along the East Coast. For Penn Paper, being part of a larger corporation offers opportunities for operational efficiency and access to resources that could drive further growth.
Pennsylvania Paper & Supply has been a well-regarded distributor in its industry with strong brand recognition, particularly through its association as the fictional paper supplier Dunder Mifflin in "The Office." The seller's decision to divest was likely influenced by the desire for continued business stability and growth under a larger corporate umbrella while maintaining operational excellence.
Regulatory path
This transaction involved minimal regulatory scrutiny due to the absence of specific market dominance issues in the Pennsylvania Paper & Supply sector. Given Envoy Solutions' broader scope, there were no remedies required, and the deal was not subject to significant antitrust reviews at either the federal level or state-level authorities such as the Federal Trade Commission (FTC) or Department of Justice (DOJ). The jurisdictions likely involved would include state regulatory bodies in Pennsylvania, New York, and New Jersey given Envoy's expanded footprint in these regions.