G-P Consumer Products to Acquire SPG
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Georgia-Pacific Consumer Products LP, Atlanta, Ga., USA, and SPG Holdings LLC, Dallas, Texas, have reached an agreement under which G-P will purchase SPG, a paper goods company that manufactures and converts products for the foodservice industry. SPG has operations in Green Bay, Wis., Hattiesburg, Miss., and Augusta, Ga. CIC Partners, a Dallas-based middle market private equity firm, has been lead investor in the company since 2011.
Closing of the acquisition, subject to regulatory review and customary closing conditions, is anticipated later this year. Financial details of the agreement were not disclosed.
"SPG has skilled employees, high-quality assets, efficient operations, and an excellent customer service model, and will be a significant addition to the Georgia Pacific Professional business," said Kathy Walters, who leads G-P's Consumer Products Group that includes the Professional business.
Greg Santaga, CEO of SPG, said that "we have enjoyed many great years with the support of CIC Partners and are looking forward to building upon that success with Georgia Pacific. We believe Georgia-Pacific provides the best, long-term option for our employees, our customers and our shareholders. The SPG organization and assets will fit well with the healthy and growing Georgia-Pacific Professional business."
Marshall Payne, chairman of SPG's board of directors and partner at CIC, added that "Greg Santaga and the founding team of SPG have been outstanding partners. SPG has done an excellent job of generating strong organic growth and enhancing the company's position in the foodservice specialty paper segment, resulting in a great outcome for our investors and management partners."
Scott Light, president, Georgia-Pacific Professional, noted that "Georgia-Pacific believes SPG will help us to better serve our existing customers in the foodservice industry, particularly limited-service restaurants, as well as to help us expand our capabilities to further grow our business in these important segments."
