Situation Overview:
A successful and growing publicly traded medical technology and packaging manufacturer was looking to divest a non-core division in the sustainable packaging industry in order to focus on the core business.
Our Client:
- UFP Technologies (NasdaqCM: UFPT), is a publicly traded designer, manufacturer and distributor of packaging and other protective solutions primarily for medical devices.
- UFP was founded over 50 years ago by the family of the current CEO who continues to maintain a significant interest in the business. UFP acquired MFT 25+ years ago and went public at the same time. UFP is a $400MM revenue company with a $1.3 billion public market enterprise value.
- MFT is a manufacturer of custom environmentally sustainable molded fiber packaging products primarily for consumer packaged goods.
- As the company grew its core business in the medical products market, UFP became compelled by its board to shed non-core businesses, including MFT.
The Goal:
- Maximize the value for the Company while ensuring the future success of the business by selling it to a strong future owner.
- Conduct a formal sale process soliciting interest from multiple strategic and financial buyers simultaneously.
The Outcome:
- MFT was successfully sold to CKF, Inc., a molded fiber packaging company based in Canada controlled by a large family office investor.
- CKF had been looking to enter the U.S. market for quite some time so when this opportunity came up they pursued it enthusiastically and acquired the business with two facilities in Iowa and Texas along with a piece of property where one of the plants was located.
- MFT allowed CKF to expand into the CPG market which to date had not been a major focus.
- Jason Holt, VP & GM at UFP said “Calabasas Capital supported the transaction from start to finish in a variety of ways. David and Andrew were helpful, flexible, and nimble. They are knowledgeable, creative and timely and I really enjoyed working with them.”
