JAY — Pixelle Specialty Solutions Holding, owner of the Androscoggin paper mill, announced Monday it entered an agreement to sell the Pennsylvania-based company to H.I.G. Capital.

H.I.G is a leading global alternative investment firm with $48 billion of equity capital under management. Terms of the transaction were not disclosed, according to the announcement posted Monday on Business Wire.

Pixelle was formed in 2018 by Lindsay Goldberg, a private investment firm that focuses on partnering with families, founders and management teams seeking to actively build their businesses.

Pixelle bought the Androscoggin Mill and associated properties from Verso Corp. in early 2020.

“Pixelle has built an industry-leading four-mill specialty paper platform with mills in Chillicothe, Ohio; Jay, Maine; Spring Grove, Pennsylvania; and Stevens Point, Wisconsin, according to the announcement.

The mills operate a total of 11 paper machines, including two in Jay, and produce more than 1 million tons of paper annually, according to the release.


“Together with Lindsay Goldberg, Pixelle has developed a broad, innovative portfolio of industry-leading brands across the specialty papers and sustainable packaging markets,” Timothy Hess, Pixelle’s chief executive officer, said in the announcement. “In under four years, we have transformed Pixelle into the leading specialty-focused paper producer in North America through three strategic acquisitions and successful implementation of a continuous improvement program. We thank Lindsay Goldberg for their partnership and look forward to our next chapter with H.I.G. Capital.”

“We are very pleased to have partnered with Pixelle’s management to execute on a strategic plan to position the business as a true market leader and partner of choice to its customers,” Russell Triedman, managing partner at Lindsay Goldberg, added. “We are especially proud to have worked with Pixelle’s management team to advance the company’s sustainability initiatives, including responsible sourcing practices, reduced energy consumption, and the continued development of environmentally friendly products. Pixelle is poised for continued success and we wish Tim and his team the best.”

The transaction is subject to customary closing conditions, including regulatory approvals, and is expected to close in the second quarter of 2022.

Credit Suisse served as lead financial adviser to Pixelle on the transaction. Houlihan Lokey also served as financial adviser to Pixelle. Credit Suisse and Macquarie Capital are providing committed financing in support of the transaction. Macquarie Capital and Jefferies acted as financial advisers for H.I.G.

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