An Affiliate of Sun Capital Partners, Inc. Acquires Two Coated-Recycled Board Mills from Graphic Packaging to Form Paperworks Industries, Inc.

2008-09-17 23:35:01 -

www.suncappart.com - Sun Capital Partners, Inc. ("Sun Capital"), a leading private investment firm specializing in leveraged buyouts and investments in market-leading companies, today announced that one of its affiliates has acquired two coated-recycled board ("CRB") mills that produce coated-recycled paperboard for folding carton packaging products. The seller is a subsidiary of Graphic Packaging Holding Company (NYSE:GPK). The newly-formed company, which

will be doing business as PaperWorks Industries, Inc. ("PaperWorks Industries"), has mills located in Philadelphia, Pennsylvania and Wabash, Indiana that produce approximately 300,000 tons of 100% clay-coated recycled paperboard annually, making it the largest independent CRB mill group in the U.S. with nearly 11% of the U.S. coated-recycled paperboard market. End use markets include dry and frozen foods, household goods, oral care products, and beverage products. Terms of the transaction were not disclosed.

Scott W. Edwards, Vice President, Sun Capital Partners, Inc., commented, "We are delighted to add PaperWorks Industries to our growing portfolio of paper and packaging affiliates which include existing controlling interests in Exopack Holding, VeriPlast Solutions, and InteliCoat Technologies. We look forward to working with the new management team and its dedicated associates in growing the business both organically and through add-on acquisitions."

Mesirow Financial, Inc. served as exclusive financial advisor to Graphic Packaging in connection with this transaction.

About Graphic Packaging Holding Company

Graphic Packaging Holding Company (NYSE:GPK), headquartered in Marietta, Georgia, is a leading provider of paperboard packaging solutions for a wide variety of products to food, beverage and other consumer products companies. The company is one of the largest producers of folding cartons and holds a leading market position in coated-recycled boxboard and specialty bag packaging. The company's customers include some of the most widely recognized companies in the world. Additional information about Graphic Packaging, its business and its products is available on the company's web site at www.graphicpkg.com.

About Sun Capital Partners, Inc.

Sun Capital Partners, Inc. is a leading private investment firm focused on leveraged buyouts, equity, debt, and other investments in market-leading companies that can benefit from its in-house operating professionals and experience. Sun Capital affiliates have invested in and managed 200 companies worldwide with combined sales in excess of $40.0 billion since Sun Capital's inception in 1995. Sun Capital has offices in Boca Raton, Los Angeles, and New York, as well as affiliates with offices in London, Paris, Frankfurt, Tokyo, and Shenzhen. For more information, please visit www.SunCapPart.com.

Sun Capital Partners, Inc., Boca Raton
Scott W. Edwards, Vice President, 561-394-0550