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Churchill Leads Debt Financing to Support MPE Partner’s LBO, Merger of Central Coated Products and Sun America
Churchill Asset Management was lead left arranger and Portfolio Advisors served as joint lead arranger for a debt financing package to support the leveraged buyout and subsequent merger of Central Coated Products and Sun America by MPE Partners, according to sources.
MPE Partners typically invests in manufacturing and industrial companies generating $8 million to $40 million of EBITDA, according to its website.
Founded in 1976, Alliance, Ohio-based Central Coated Products is a manufacturer of custom-cut and coated wax paper for food processing, food service and industrial applications. Sun America, founded in 1993 and also based in Alliance, manufactures custom paper baking cups for the high-speed production of baked goods.
William Blair served as financial advisor to MPE Partners, and Calfee, Halter, & Griswold and BakerHostetler served as legal advisors. PMCF Investment Banking served as advisor to Sun America.
Other deals in food packaging include the 2020 acquisition of WinCup by Atar Capital from BlackRock. Ares Capital Corp. provided debt financing to support the transaction, according to a press release. At the time, WinCup employed nearly 1,000 people across eight manufacturing facilities and offered nationwide distribution.
In a significant move within the packaging industry, Apollo Global Management-backed Novolex in December 2024 acquired then-publicly-listed Pactiv Evergreen for $6.7 billion, or $18 per share. Pactiv Evergreen traded on the Nasdaq under ticker symbol PTVE.
To support the transaction, Novolex was expected to issue $4.6 billion of debt financing, consisting of a $3 billion term loan and a $1.6 billion bridge loan, which is expected to convert into high-yield bonds, Octus, formerly Reorg, previously reported. On March 27, Novolex issued $1.415 billion of 6.75% senior secured notes due 2032.
As of Dec. 31, 2024, business development company holders of Novolex’s seven-year term loan due April 2029, priced at SOFR+300 bps, included Blackstone Private Credit Fund, Crescent Private Credit Income Corp. and Nuveen Churchill Private Capital Income Fund.
As of March 31, 2025, BDC holders of Novolex’s first lien debt due March 2032, priced at SOFR+325 bps, included Blue Owl Credit SLF.
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