Peakstone Advises Pacific Paper Tube Inc. on its sale to Sky Island Capital

July, 2024. Pacific Paper Tube, based in Stockton, California, is a leading, multi-facility manufacturer in the paper tube and core industry. PPT has successfully serviced a variety of end markets with paper cores, protective packaging, and construction tubes. The Company has historically been family funded and operated, and the sale marks PPT’s first institutional capital partner.

Pacific Paper Tube’s Chairman, Patrick Wallace, said, “PPT has grown from a small start-up to the largest independent tube and core manufacturer west of the Mississippi River thanks to the hard work of our employees at our four operating facilities. With support from Sky Island, we are excited to accelerate our growth. Many thanks to our advisors at Peakstone for successfully guiding us to this next chapter of growth.”

Sky Island Capital provided equity capital for the transaction. Sky Island Capital’s Principal, Cord Walker, said “We are excited to have Pacific Paper Tube as our first platform investment in Sky Island’s second fund. Under the ownership of the Wallace family, Pacific Paper Tube has demonstrated impressive growth and geographic expansion over its 35+ year history, and we are proud to partner with the founding family and their management team to drive the Company to new heights under our combined leadership.”

Peakstone served as PPT’s exclusive M&A advisor. Carney Badley Spellman, P.S. served as PPT’s legal counsel.

For additional information please contact:

Nick Clementi, Managing Director, nclementi@peakstone.com

Brad Lehl, Managing Director, blehl@peakstone.com

Michael Dobin, Analyst, mdobin@peakstone.com

About Peakstone

Peakstone is a leading investment bank that specializes in mergers and acquisitions, advisory, and capital raising for middle market clients. Our team is comprised of senior investment banking professionals who have decades of experience and have executed hundreds of transactions totaling billions of dollars. For additional information, visit www.peakstone.com. To receive investment and proprietary acquisition opportunities, please register at www.peakzone.com.

Peakstone served as exclusive financial advisor to Pacific Paper Tube, LLC

July, 2024. Peakstone served as exclusive financial advisor to Pacific Paper Tube, LLC in connection with the Company’s purchase of the paper tube and core division of Hytech Paper Products, Inc. (“Hytech”).

Pacific Paper Tube, based in Stockton, California, is a leading, multi-facility manufacturer in the paper tube and core industry.  PPT has successfully serviced a variety of end markets with cores, protective packaging, and construction tubes. The Company has a strong history of acquisitions and successful geographic expansion.  The Hytech acquisition will further the Company’s existing opportunities in the British Columbia market.

Hytech Paper Products is a British Columbia based manufacturer of paper products including paper tubes and cores, paper rolls, and protection board.  PPT and Hytech had a history of partnership in the industry.

Pacific Paper Tube’s Chairman, Patrick Wallace, said, “PPT has grown from a small start-up to the largest independent tube and core manufacturer west of the Mississippi and the Hytech acquisition will help us continue growing our market share in the industry, the northwestern U.S. market, and more specifically the British Columbia market.”

Peakstone served as PPT’s M&A advisor. Carney Badley Spellman, P.S. served as PPT’s legal counsel.

For additional information please contact:

Nick Clementi, Managing Director, nclementi@peakstone.com

Brad Lehl, Managing Director, blehl@peakstone.com

Michael Dobin, Analyst, mdobin@peakstone.com

About Peakstone

Peakstone is a leading investment bank that specializes in mergers and acquisitions, advisory, and capital raising for middle market clients. Our team is comprised of senior investment banking professionals who have decades of experience and have executed hundreds of transactions totaling billions of dollars. For additional information, visit www.peakstone.com. To receive investment and proprietary acquisition opportunities, please register at www.peakzone.com.

Update: Transportation and Logistics M&A Update – July, 2024

July, 2024

For Q1 2024, the median transaction value in Transportation & Logistics was $19 million. For Q1 2024, strategic buyers accounted for 91% of transactions.

Select recent notable publicly announced M&A transactions:

–Enservco Corporation announced its acquisition of Buckshot Trucking for $6 million in March 2024.

–An undisclosed buyer closed its acquisition of Maytag Aircraft for $46 million in March 2024.

–Ryder System closed its acquisition of Cardinal Logistics Management Corporation for $290 million in February 2024.

–SkyWest closed its acquisition of Corporate Flight Management for $15 million in February 2024.

–PITT OHIO closed its acquisition of 57-acre terminal, 700 E. Rawson Avenue for $19 million in January 2024.

Update: Technology and Software M&A Update – July, 2024

July, 2024

For Q1 2024, the median transaction value in Technology and Software was $45 million. For Q1 2024, strategic buyers accounted for 95% of transactions.

Select recent notable publicly announced M&A transactions:

–Blue Yonder Group announced its acquisition of One Network Enterprises for $839 million in March 2024.

–Fransico Partners Management announced its acquisition of Jama Software for $1.2 billion in March 2024.

–Renesas Electronics Corporation announced its acquisition of Altium Limited for $5.9 billion in February 2024.

–Synopsys announced its acquisition of Ansys for $33.5 billion in January 2024.

–Hewlett Packard Enterprise company announced its acquisition of Juniper Networks for $15.4 billion in January 2024.

Update: Pet M&A Update – July, 2024

July, 2024

For Q1 2024, the median transaction value in Pet was $8 million. For Q1 2024, strategic buyers accounted for 94% of transactions.

Select recent notable publicly announced M&A transactions:

–An undisclosed buyer announced its acquisition of Altmed Pets for $2 million in February 2024.

–Better Choice Company closed its acquisition of Aimia Pet Healthco for $1 million in February 2024.

–Tiny closed its acquisition of Retail Store Networks for $9 million in January 2024.

–Nestlé Purina PetCare Company closed its acquisition of 2 Fairburn Facilities for $108 million in January 2024.

–Pet MD Brands closed its acquisition of Riley’s Pets for $8 million in January 2024.

Update: Packaging M&A Update – July, 2024

July, 2024

For Q1 2024, the median transaction value in Packaging was $170 million. For Q1 2024, strategic buyers accounted for 83% of transactions.

Select recent notable publicly announced M&A transactions:

–Capital Recovery Group announced its acquisition of Idled Wisconsin Rapids Mill and related assets of Billerud at an undisclosed value in March 2024.

–Think Better Group and NatWest Markets closed its acquisition of Klean Kanteen at an undisclosed value in February 2024.

–Clearwater Paper Corporation announced its acquisition of Paperboard manufacturing facility of Graphic Packaging Holding Company for $700 million in February 2024.

–Rapid Packaging closed its acquisition of Lawgix International at an undisclosed value in February 2024.

–BWAY Corporation closed its acquisition of all the assets of Consolidated Container Company for $56 million in February 2024.

Update: Infrastructure M&A Update – July, 2024

July, 2024

For Q1 2024, the median transaction value in Infrastructure was $72 million. For Q1 2024, strategic buyers accounted for 87% of transactions.

Select recent notable publicly announced M&A transactions:

–RHI Magnesita announced its acquisition of Resco Products for $280 million in March 2024.

–EQT Corporation announced its acquisition of Equitrans Midstream Corporation for $14.4 billion in March 2024.

–Iberdrola announced its acquisition of Avangrid for $2.5 billion in March 2024.

–Orica Limited announced its acquisition of Cyanco Corporation for $640 million in February 2024.

–Apollo Global Management closed its acquisition of Energos Infrastructure Management for $136 million in February 2024.

Update: Industrials and Manufacturing M&A Update – July, 2024

July, 2024

For Q1 2024, the median transaction value in Industrials and Manufacturing was $38 million. For Q1 2024, strategic buyers accounted for 93% of transactions.

Select recentnotable publicly announced M&A transactions:

–The Home Depot announced its acquisition of SRS Distribution for $18.2 billion in March 2024.

–Diploma announced its acquisition of Peerless Aerospace Fastener for $300 million in March 2024.

–Middle Ground Management announced its acquisition of The L.S. Starrett Company for $136 million in March 2024.

–Lockheed Martin Corporation announced its acquisition of Terran Orbital Corporation for $329 million in March 2024.

–Titan International closed its acquisition of The Carlstar Group for $296 million in February 2024.

Update: Healthcare M&A Update – July, 2024

July, 2024

For Q1 2024, the median transaction value in healthcare was $56 million. For Q1 2024, strategic buyers accounted for 93% of transactions.

Select recent notable publicly announced M&A transactions:

–Ingersoll Rand announced its acquisition of ILC Dover for $2.4 billion in March 2024.

–AbbVie announced its acquisition of Landos Biopharma for $116 million in March 2024.

–Novartis AG closed its acquisition of IFM Due for $835 million in March 2024.

–Calyx Services announced its acquisition of Invicro for $130 million in March 2024.

–Haemonetics Corporation closed its acquisition of Advanced Cooling Therapy for $160 million in March 2024.

Update: Food and Beverage M&A Update – July, 2024

July, 2024

For Q1 2024, the median transaction value in Food and Beverage was $31 million. For Q1 2024, strategic buyers accounted for 88% of transactions.

Select recent notable publicly announced M&A transactions:

–Sambazon closed its acquisition of SunOpta (Açaí and Smoothie Bowl Business) for $6 million in March 2024.

–PTF Holdings closed its acquisition of Progressive Produce Corporation for $120 million in February 2024.

–White River Soy Processing closed its acquisition of Benson Hill Ingredients for $72 million in February 2024.

–Easy Bio closed its acquisition of Devenish Nutrition for $66 million in February 2024.

–Our Home announced its acquisition of Utz Quality Foods (Certain assets and brands) for $183 million in January 2024.