The DAK Group, a leading investment bank specializing in middle-market mergers and acquisitions worldwide, announces the sale of its client M&Q Packaging Corporation, headquartered in Schuylkill Haven, PA, to Capital Partners, a private equity firm located in Norwalk, CT. The DAK Group served as the exclusive investment banker and financial advisor to M&Q, working initially on a pre-transaction phase to prepare the company to maximize its value in a sale process, then initiating the transaction and managing the divestiture process.
The transaction capitalizes on M&Q’s outstanding reputation as a high-quality, innovative manufacturer of high-temperature thermoplastic nylon and polyester, whose superior technology for custom packaging products has fundamentally changed food service industry packaging. The descendants of the 1956 founders provided Capital Partners with a turnkey business to use as a platform company as they expand into the $6 billion high-temperature plastics marketplace.
Mike Schmal, M&Q’s President, comments: “We have built a strong business in the thermoplastics packaging space, and our patented technology and proprietary products, coupled with Capital Partners’ low leverage approach and investment in the resources needed, will allow us to open new markets and penetrate existing markets more deeply.”
“We are excited to be backing a strong, well-established management team at M&Q, led by long time CEO Mike Schmal,” says Russ Spieler, Principal of Capital Partners. The acquisition marks Capital Partners’ first step into the plastic packaging industry, Capital Partners and the management are focused on the continued growth through organic initiatives and acquisitions.
“We are pleased to have delivered significant value to M&Q’s ownership using our unique worldwide, proprietary process to identify the right buyer,” says Alan Scharfstein, President of The DAK Group. “This acquisition is a tremendous opportunity for M&Q’s growth vision to be realized.”
