Monomoy Capital Partners Acquires Mac Papers, Inc.

Market Leading Distributor of Paper and Packaging Products in the Southeast Joins the Monomoy Portfolio

NEW YORK–(BUSINESS WIRE)–Monomoy Capital Partners, a private investment firm with $1.6 billion in committed capital that invests in the debt and equity of middle market businesses, announced today that it has acquired Mac Papers, Inc., Mac Paper Converters, Inc. and All Square Digital Solutions, Inc. (collectively “Mac Papers”), the leading regional distributor of paper, packaging, wide format and envelope products in the Southeastern United States. Terms of the transaction were not disclosed.

Mac Papers was founded by Frank and Tom McGehee in 1965 as a fine paper distributor in Jacksonville, Florida. Led today by their sons David, Sutton and Mac McGehee, the business has significantly expanded over its 55-year history and now generates over $600 million in annual sales. In addition to fine paper, Mac Papers now distributes packaging materials and equipment, wide format products, facility supplies and office products. Mac Papers also operates a state-of-the-art envelope converting facility in Jacksonville, Florida, that sells envelopes through Mac Papers and directly to third parties. The Company distributes products from 19 branches located throughout the Southeast and through a sales force of over 200 dedicated team members focused on unmatched product quality and customer service.

“We would like to congratulate and thank the McGehee family for building a premier, market-leading business in paper and packaging distribution headquartered in Jacksonville,” said Stephen Presser, a Monomoy Co-Founder and Partner and, coincidentally, a Jacksonville native. “Mac Papers is a proven, highly-regarded supplier to a diverse customer base, a true partner with its suppliers and is well-positioned for continued success in the future. Monomoy is excited to collaborate with the Mac Papers team to drive long-term value for the Company’s customers, suppliers and employees.”

“We have felt privileged to lead the business our fathers Frank and Tom started 55 years ago, and we are confident that it will continue to grow and enjoy a very bright future under Monomoy’s ownership,” said Mac Papers President Sutton McGehee. “Monomoy’s focus on excellent customer service and trusted relationships with customers and supply partners aligns perfectly with the deep-seated culture at Mac Papers. We know Monomoy is fortunate to have the best people in the business as their employees at Mac Papers and we look forward to what the future holds for them as they partner with Monomoy to build upon Mac Papers’ legacy and realize the significant growth opportunities for this business.”

“We are excited to welcome Mac Papers to Monomoy’s portfolio,” said Dan Collin, Monomoy Co-CEO and Partner. “Mac Papers is the preeminent regional paper supplier in the Southeast with a significant and growing presence in packaging and wide format products. We look forward to continuing the work of the McGehee family as we help management grow the business in the years ahead.”

Upon closing of the transaction, Rick Mitchell, the company’s current Chief Operating Officer, will assume the role of President and Chief Operating Officer of Mac Papers and Greg Gay will continue as the company’s Chief Financial Officer. “The entire Mac Papers team looks forward to working with Monomoy. Their extensive resources and capabilities will allow us to advance the company’s many strategic and operational initiatives,” said Mr. Mitchell. “We are excited to begin the next phase in our evolution as a Company and to continue growing with our market-leading customer base and best-in-class suppliers.”

Monomoy acquired Mac Papers through its third private equity fund, Monomoy Capital Partners III, L.P. Mac Papers is the fifth family-owned business acquired by Monomoy over the past two years.

Bank of America, N.A. provided acquisition financing for the transaction, and Spirit Realty Capital, Inc. executed a sale-leaseback transaction with Monomoy in connection with the acquisition. Michael Sator and Jennifer Sheehan of Kirkland & Ellis LLP provided legal counsel to Monomoy; Krupa Shah and Jason DeWitt of JLL Capital Markets structured the real estate sale on behalf of Monomoy; and Alvarez & Marsal, LLC completed financial, accounting, tax and operational diligence for Monomoy.

Mesirow Financial acted as the exclusive financial advisor to the McGehee family and Mac Papers in the sale, and Rogers Towers, P.A. provided legal counsel to Mac Papers and the family.

About Monomoy Capital Partners

Monomoy Capital Partners is a private equity firm with $1.6 billion in committed capital that invests in middle-market businesses in the manufacturing, industrial, distribution and consumer products sectors. The firm invests in the both the equity and debt of middle-market businesses that can benefit from Monomoy’s distinctive approach to operational and financial improvement. Monomoy designs and executes a customized value creation plan for each acquisition that seeks to generate significant cash flow and improve earnings within 12 to 18 months of an investment. Over the past 15 years, Monomoy has closed over 50 middle-market acquisitions in the manufacturing, distribution and consumer product sectors. To learn more about Monomoy and its portfolio companies, please visit www.mcpfunds.com.

About Mac Papers and Mac Papers Converters

One of the largest wholesale distributors in the southeastern United States, Mac Papers is a trusted distribution partner for paper and print, packaging, wide format, facility supplies and office products. The company is headquartered in Jacksonville, Florida and operates branch locations and retail stores throughout the Southeastern United States. Mac Papers Converters converts and prints an extensive range of standard and custom envelopes – up to 18 million per day – utilizing the latest in equipment and technology. Prior to its acquisition by Monomoy, Mac Papers was a third generation, family-owned and operated business founded in 1965. To learn more about Mac Papers, please visit www.macpapers.com.

Contacts

Erica Bartsch

Sloane & Company

917-232-2718

ebartsch@sloanepr.com