Transaction overview
Mac Papers + Packaging, LLC, a portfolio company backed by private investment firm Monomoy Capital Partners, acquired Dependable Packaging Solutions, Inc., a Miami-based packaging distributor, on August 11, 2021. The transaction's value was not disclosed publicly but is expected to be significant given the strategic nature of the deal for Mac Papers + Packaging in expanding its reach and capabilities. DPS provides value-added corrugated products, point-of-purchase displays, and other packaging solutions to customers across various industries including e-commerce, food, floral, and general retail markets.
Deal structure and financing
Details regarding the equity split, debt financing, and leverage metrics for this acquisition have not been disclosed. Given Monomoy Capital's track record of executing strategic acquisitions in the manufacturing and distribution sectors, it is likely that a combination of debt and equity was used to finance the deal. However, specific banks involved or the exact proportion of each funding source remains unknown. The transaction did not indicate any seller-retained stake at DPS, though such arrangements can often be part of private equity-backed acquisitions for smooth transition purposes.
Strategic context
Mac Papers + Packaging acquired Dependable Packaging Solutions to bolster its packaging design capabilities and expand its geographic distribution footprint in the southeastern United States. With this move, Mac Papers + Packaging aims to enhance its service offerings through DPS's advanced packaging solutions and design expertise. The addition of DPS is anticipated to complement Mac Papers + Packaging’s existing portfolio, enabling it to cater better to a diversified set of clients within multiple industry sectors.
From Dependable Packaging Solutions' perspective, the divestiture likely offers financial benefits such as exit liquidity for its owners, along with opportunities for further growth under Monomoy Capital's investment and operational support. This acquisition aligns well with Mac Papers + Packaging’s strategy to pursue accretive deals in packaging and wide format sectors within its target markets.
Regulatory path
The transaction did not require any public disclosure of regulatory filings or reviews by antitrust authorities, which is common for acquisitions involving companies operating primarily within regional markets without significant market overlaps. Given the undisclosed value and limited overlap with other players in similar niches such as packaging distribution and design services, it is unlikely that specific remedies were mandated to address potential competition concerns. The acquisition falls under Monomoy Capital's investment criteria focused on North American businesses, so jurisdictional scrutiny would likely have been minimal or non-existent for this deal.