Industrials | Mergers & Acquisitions, Restructurings

FutureMark Alsip Acquired by Corrugated Supplies

  • TM Capital served as exclusive financial advisor to FutureMark Alsip (Alsip Acquisition, LLC) in its sale to Paper Mill Acquisition, an affiliate of Corrugated Supplies Company (CSC)
  • Alsip, a portfolio company of The Watermill Group, operated a 165,000 ton recycled coated paper mill 20 miles south of Chicago. The mill featured a state of the art system to produce recycled pulp for the papermaking process
  • Alsip retained TM Capital in May 2014. Given the mill’s attractive location and high quality equipment, TM Capital developed several alternative investment approaches. We approached approximately 60 buyers in five sectors: coated paper, deinked pulp (DIP), packaging papers, tissue and liquidators
  • Cash flow losses led the mill to indefinitely idle production in September 2014 and file for bankruptcy in November. TM Capital helped negotiate a “stalking horse” purchase agreement with the most aggressive of the first round bidders
  • After the bankruptcy filing, TM Capital contacted its 60 original targets and 40 additional parties. TM Capitalmanaged a robust, court supervised, 30 round auction. CSC, an Illinois based corrugated converter, acquired the mill with a final price 64% above the stalking horse bid
  • The buyer plans to convert the facility to containerboard production, primarily to meet demand from CSC, by the fourth quarter of 2015