Foundation Investment Partners Expands Portfolio with Paper Converters Acquisition

Foundation Investment Partners Acquires Paper Converters, Inc.

In a strategic move to amplify its sustainable packaging portfolio, Foundation Investment Partners (FIP) has successfully acquired Paper Converters, Inc. This acquisition was facilitated through FIP’s platform company, Sustainable Packaging, LLC, marking a significant step forward in their commitment to environmentally friendly manufacturing practices.

Founded in 2002, Paper Converters, Inc. is located in Walterboro, South Carolina, specializing in the manufacturing of spiral wound paper tubes, edge boards, and sheets. The company primarily serves the textile industry in the Southeastern United States, focusing on delivering exceptional customer service alongside eco-friendly products. All offerings from Paper Converters are 100% biodegradable and recyclable, aligning perfectly with the growing demand for sustainable solutions in packaging.

This acquisition creates a unique opportunity for synergy, allowing Paper Converters and its sister company, Amspak, to collaborate effectively across overlapping product lines. Such collaboration is expected to yield improved operational practices and ensure a robust supply chain continuity, which is crucial for meeting growing market demands.

David Partin, CEO of Sustainable Packaging, expressed excitement about developing centers of excellence in their facilities. He emphasized the goal of maximizing value for their customers through enhanced capabilities and innovative products. “We strongly believe in the growth potential of this company,” remarked David Wood, Managing Member of FIP. According to Wood, the core strengths of the paper tube industry—versatility, sustainability, and customization—are essential in providing durable, cost-effective, and eco-friendly solutions for various market needs.

As part of the transition, the former owners of Paper Converters, Kline Smyly, and Tanya Barnes will remain involved in the operations to guide the company toward its vision of becoming the premier value provider of paper packaging in the region. Smyly, recognized for his operational expertise, is expected to be a valuable asset in the integration process. He stated, “We are excited to partner with FIP and Sustainable Packaging to continue the company’s growth. The cultures of our businesses align well, focusing on customer service and value while fostering a great working environment.”

The acquisition aligns with FIP’s investment strategy, which mainly targets niche manufacturers, high value-added distributors, and outsourced business service providers with EBITDA levels ranging from $1 million to $10 million. By embedding their team with the owners or operators of smaller businesses, FIP aims to offer the necessary support, guidance, and resources to drive growth and enhance operational efficiency.

There is a significant market demand for sustainable packaging solutions, making this acquisition timely and strategically sound for both Paper Converters and FIP. As consumers and businesses increasingly prioritize environmentally responsible products, the collaboration promises to position these companies at the forefront of the sustainable packaging market.

For additional information about the acquisition and other investment opportunities, you can visit Foundation Investment Partners.

This is a remarkable development in the eco-friendly packaging sector and highlights the ongoing evolution within the industry as companies work to meet stringent environmental standards while also delivering high-quality products.