Heartwood Partners Completes Successful Exit from M&Q Holdings with Strategic Sale

Heartwood Partners Completes Successful Investment Exit from M&Q Holdings

In a notable transaction, Heartwood Partners has successfully exited its investment in M&Q Holdings through the sale of MQ Packaging. The sale marks a significant milestone for Heartwood Partners II, LP and its affiliated entities, reflecting their strategic focus on optimizing their investment portfolio. This exit comes after the previously announced sale of Outlook Group, concluding Heartwood’s entire investment in M&Q Holdings.

What MQ Packaging Brings to the Table

MQ Packaging specializes in designing and manufacturing innovative high-temperature resistant packaging solutions. Their product line, which includes proprietary thermoplastic nylon, polyester, and polyamide, serves a diverse range of markets, particularly focusing on the protein, foodservice, and specialty sectors. The company prides itself on providing packaging solutions that enhance performance while ensuring cost-efficiency and maintaining product integrity.

MQ Packaging's CEO, John Wurzburger, expressed his satisfaction with the partnership with Heartwood Partners, attributing the company's growth and development to their patient, quality-focused investment strategy. Under Heartwood's ownership, significant advances were made within the organization, such as acquiring FlavorSeal to enhance spice transfer capabilities and Zoop for improved manufacturing output. These strategic expansions are instrumental in positioning MQ Packaging at the forefront of the packaging industry.

Heartwood Partners' Strategic Vision

Heartwood Partners has established a reputation for its unique approach to private equity. Founded in 1982, the firm adopts a lower-leverage investment model aimed at fostering long-term relationships with management teams. Their extensive expertise and focus on sustainable business practices have allowed them to support growth across various niche markets, including specialty chemicals and industrial services. As of December 2024, Heartwood manages over $1.3 billion in investments and has a track record of over 100 successful acquisitions.

Mark Allsteadt, Co-Founder at Heartwood Partners, noted that the successful exit of MQ Holdings reflects a shared vision and commitment from both Heartwood and the leadership at MQ. Allsteadt appreciates the strong foundation of customer service and operational excellence that has been cultivated during their partnership.

Looking Ahead

The conclusion of this sale marks Heartwood Partners' second exit in 2025, following a trend of active investment management, having celebrated multiple exits for three consecutive years. The firm continues to actively seek founder, family, and management-held businesses in the niche manufacturing and packaging sectors, aiming to build upon their legacy of excellence.

As MQ Packaging transitions into its next phase of ownership, the company is well-poised to capitalize on the momentum built during its time with Heartwood. The innovative spirit and investment in cutting-edge technology will likely continue to fuel growth and market leadership.

The exit from M&Q Holdings is just one of many strategic maneuvers that highlight Heartwood Partners' commitment to intelligent investments and nurturing capable leadership within the organizations they acquire. As the company forges onward, both the financial community and industry watchers will be eager to follow MQ Packaging's developments and Heartwood's future endeavors in the private equity landscape.

For more information about Heartwood Partners and their ongoing investment strategies, visit their official website at Heartwood Partners.