Atlantic Packaging begins U.S. expansion with joint venture near Chicago
By Pulp & Paper Canada
By Pulp & Paper Canada
Toronto-based Atlantic Packaging Products Ltd. has created a joint venture company that will operate a new sheet feeder business in Carol Stream, Illinois (a suburb of Chicago). The new joint venture, BlackHawk Corrugated, will be co-owned and…
Toronto-based Atlantic Packaging Products Ltd. has created a joint venture company that will operate a new sheet feeder business in Carol Stream, Illinois (a suburb of Chicago). The new joint venture, BlackHawk Corrugated, will be co-owned and operated by Atlantic and its JV partner StandFast Packaging of Addison, Illinois.
According to Atlantic Packaging, Chicago is the first of several joint venture initiatives that
the company is in the process of developing across the Midwest and Northeastern regions of the U.S.
“As a privately held company with a strong balance sheet and a history of successfully green fielding our own paper mills and corrugated plants in Canada, Atlantic is prepared to move quickly and offer new JV opportunities to independent box plants across several US regions that will create multiple profit centers for our partners and a clear path to full vertical integration that the traditional sheet feeder models simply cannot support,” said Dave Boles, president, Atlantic Packaging. “We are not just looking for sheet supply contracts, but are also seeking to build true partnerships that will thrive and grow with us in the US markets.”
Atlantic’s investment in BlackHawk will exceed $40 million and create more than 100 new jobs in the region. BlackHawk is expected to be fully operational by late 2015.
A company statement says Atlantic’s expansion into several competitive U.S. markets is a critical part of its long-term growth strategy, given the rapid consolidation trends currently occurring in the U.S. and Canadian corrugated packaging markets. Atlantic has chosen G2 Capital Advisors of Boston as its strategic advisor in the execution of its U.S. growth initiative.
“We have spoken with a significant number of independent box plants located across the Midwest and Northeast and there is clearly an appetite for them to secure their long-term paper supply with a reputable, quality supplier who offers competitive market pricing,” said Jeffrey Unger, CEO at G2 Capital Advisors.
Atlantic Packaging Products Ltd. was founded in 1945 by the Granovsky family. It is an integrated corrugated packaging company which operates paper and board mills in Canada, as well as a recycling division.