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Wellspring Capital Management Acquires Jen-Coat, Inc.
Harold Bevis Named Chairman and CEO of New Holding Company
August 4, 2010
NEW YORK, NY--Wellspring Capital Management LLC (“Wellspring”) announced today that it has acquired Jen-Coat, Inc. (“Jen-Coat” or the “Company”), a leading flexible packaging manufacturer in the food, healthcare and industrial segments, from CGW Southeast Partners. Jen-Coat is the first subsidiary of a new holding company formed by Wellspring and industry executive Harold Bevis. Financial terms of the transaction were not disclosed.
Based in Westfield, Massachusetts, Jen-Coat’s products are composite substrates used in demanding applications such as composite food packaging structures, flexible lidding substrates, single-use packets/sachets, composite medical substrates, label products and release liners. The Company can combine virtually unlimited substrates (paper, fabric, film and foil) into single composite substrates to meet specific performance attributes such as flavor control, shelf life, moisture vapor transmission rates, oxygen transmission rates and package mechanical integrity. The Company uses sophisticated manufacturing technology including extrusion coating and laminating, adhesive laminating and metalization. A significant portion of the Company’s products are printed and the Company utilizes state‐of‐the‐art 10-color printing equipment. The Company’s facilities are compliant with food industry and medical industry requirements.
A recognized leader in packaging innovation, Jen-Coat is well‐known for its technical and product development expertise, and is one of the first to offer environmentally friendly solutions. The Company’s excellent reputation and collaborative approach has yielded long‐term, blue‐chip customer relationships. A significant portion of the Company’s revenue is conducted under proprietary, multi‐year contracts.
Mr. Bevis will serve as Chairman and Chief Executive Officer of the new holding company. Mr. Bevis has led three successful private-equity backed build-ups, creating significant value through operational improvements, internal growth programs, acquisitions and team building. He most recently served as CEO of Pliant Corporation, a producer of value-added film products, which he led through a complete operational turnaround to a successful sale. Mr. Bevis and Wellspring plan to grow the new company through capex investment, internal initiatives and acquisitions in order to better serve its customers.
Mr. Bevis said, "In part due to recent consolidation, the flexible packaging industry needs a new high-end competitor and we are going to create one. We will build the company through greenfield investment, capacity expansion, organic growth, continued development of innovative technologies and synergistic acquisitions. Jen-Coat is an excellent starting point for the new company, as it has strong and unique composite structure manufacturing expertise; outstanding six sigma operational performance; and excellent on-time customer service. We look forward to communicating with current and prospective customers about our considerable capabilities and future plans.”
Jen-Coat Founder and Chief Executive Officer Jim Kauffman and his management team will remain with the Company, and Mr. Kauffman will serve on the Board of Directors of the new company. Mr. Bevis added, “Jim Kauffman co-founded the Company in 1972 and built it the right way. I am extremely happy the team is staying on to take it to the next level.”
Mr. Kauffman said, "Our team is proud of what Jen-Coat has accomplished over the years and is excited to partner with Wellspring and Harold as we enter the next phase of growth and expansion. Wellspring and Harold have a strong track record of supporting management teams through considerable strategic and operational expertise, as well as financial resources. We look forward to a successful future and to continuing to deliver the best products and services to our customers."
Carl M. Stanton, a Managing Partner of Wellspring, said, "We are excited to form this new flexible packaging holding company and to launch the company with the acquisition of Jen-Coat, which is well positioned for continued growth. Harold Bevis has a track record of value creation in the packaging industry and we are delighted that he will lead our new company. We are also extremely honored to be partnered with Jim Kauffman and his executive team at Jen-Coat, as they have an outstanding Company with a unique culture and years of successful performance for their customers. Together with Harold and Jen-Coat’s experienced and successful management team, we will pursue a range of attractive growth initiatives.”
Brookwood Associates served as financial advisor to Jen-Coat with respect to this transaction.
Founded in 1972, Jen-Coat, Inc. supplies the food packaging, health care and industrial markets with a wide range of extrusion coated and laminated, metallized, and adhesive laminated structures. Products include sugar/sugar sub packets, paper/ foil laminations, film/foil laminations, composite can laminations, coated nonwovens, QSR wrap, release papers and many other specialty packaging materials. Headquartered in Westfield, Massachusetts and operating out of two plants totaling 370,000 square feet, Jen-Coat has earned an industry reputation as a high-quality, innovative supplier. Further information about Jen-Coat can be found at www.jencoat.com.
Harold Bevis Bio
Harold Bevis served as CEO of Pliant Corporation from 2003 until its sale to Berry Plastics in 2009. Prior to Pliant, he was CEO of Jordan Telecommunications Products from 1998 until its sale to Emerson Electric Company in 2000, remaining with Emerson as Group Vice President until joining Pliant. From 1995 to 1998, Mr. Bevis was Senior Vice President and General Manager of General Cable Corporation, which was taken public during his tenure. He also served in executive roles at General Electric; as a consultant at Booz, Allen & Hamilton and as an engineer at General Dynamics Corporation. Mr. Bevis received a bachelor’s degree in Industrial Engineering from Iowa State University and a MBA from Columbia Business School.
About Wellspring Capital Management
Wellspring Capital Management, founded in 1995, is a leading middle-market private equity firm that manages more than $2 billion of private equity capital. The firm's objective is to bring partnership, experience and value creation to each investment. By teaming up with strong management, Wellspring is able to unlock underlying value and pursue new growth opportunities through strategic initiatives, operating improvements and add-on acquisitions. The firm functions as a strategic rather than tactical partner, providing management teams with top-line support, M&A experience and financial expertise, and access to resources.
For Wellspring Capital Management
Kekst and Company
Mark Semer / Micheline Tang