Mason Wells Newsletter 2016 – Volume 1

• Mason Wells Buyout Fund IV
• Sale of Coating Excellence International

• CE Power
• Pacon Corporation

Mason Wells announced it has held a final closing on Mason Wells Buyout Fund IV and its related Executive Buyout Fund IV with total commitments of $615 million. The fundraising effort for Buyout Fund IV was launched last summer targeting total commitments of $550 million from institutional investors.

Similar to prior Mason Wells Funds, Fund IV will focus on acquiring companies that operate in four industry sectors: Outsourced Business Services, Consumer Packaged Goods, Engineered Products Services, and Packaging Materials & Converting.

Mason Wells will continue to utilize a disciplined, control-oriented investment strategy focused on companies generally headquartered in the Midwest region of the United States, and competing in the lower middle market. Through a proven Value Creation System, Mason Wells seeks to drive growth and improvements in operating and financial performance at portfolio companies.

Mason Wells anticipates making between 10 and 14 new platform investments with Fund IV over the next four to five years. Most of the platform companies targeted by Mason Wells have revenues between $25 and $300 million, and EBITDA of $5 to $30 million. Additionally, smaller tuck-in acquisitions are sought to add to existing portfolio companies.

Mason Wells closed the sale of Coating Excellence International on December 22, 2015, to ProAmpac, a portfolio company of Wellspring Capital Management of New York.

CEI, located in Wrightstown, Wisconsin, is a flexible packaging converter and specializes in wide web printing, extrusion coating, and laminating of film, foil, paper, and nonwovens. It has been a portfolio company of Mason Wells Buyout Fund II since 2008. During that time, the company grew considerably. ProAmpac, recently formed by Wellspring through the merger of Prolamina Corporation and Ampac Packaging LLC, is a leading global flexible packaging company operating primarily under the Prolamina, Ampac, and Tulsack brands.

Tom Smith, Executive Managing Director of Mason Wells said, “CEI is an outstanding company led by an exceptionally talented management team. We have thoroughly enjoyed working with every member of the organization over the last eight years as the business achieved significant profitable growth. We are extremely pleased to have the business become a part of the ProAmpac organization which we expect will allow the company to continue to excel at providing its customers with innovative and exceptional products and service.”

For more information, please visit the Company’s website at www.proampac.com.

In October 2015, CE Power, a Mason Wells portfolio company and a leading independent provider of outsourced power system engineering, testing, and maintenance services, announced the acquisition of Power & Generation Testing, Inc. of Nashville, Tennessee. PGTI provides electrical power testing, maintenance, and emergency response services for industrial and utility clients in Tennessee and surrounding areas. PGTI specializes in acceptance and maintenance testing for voltages ranging from 480V up to 161kV. The management and employees of PGTI, have played an integral role in the company’s growth and success and will continue to do so moving forward.

PGTI’s customers will now have access to CE Power’s full breadth of low, medium, and high voltage solutions, including turnkey engineering, power system commissioning, and equipment repair services. The partnership further reinforces CE Powers’ commitment to the Tennessee and greater Southeast marketplace, including the Knoxville, Tennessee area where CE Power already has a growing presence.

“We are thrilled about partnering with PGTI and believe the customers and employees of both organizations will benefit from this partnership as we continue to grow as a premier independent electrical power solutions provider in the Eastern United States,” said Bill McCloy, President, and CEO of CE Power.

For more information, please visit the Company’s website at www.cepower.net.

Pacon Corporation, a leading global supplier of education and arts & craft products, announced on January 12, 2016, that it acquired the assets of The Chenille Kraft Company.

Founded in 1930, The Chenille Kraft Company serves the education market with a wide range of arts & crafts products, including WonderFoam®, Creativity Street®, Chenille Stems, Felt Sheets, and many other accessories.

With the acquisition of Chenille Kraft Company, Pacon now offers customers an extensive line of products, strengthening its ability to be a single-source supplier for educational aids, paper products, and arts & crafts. “We are excited to expand our arts & crafts category through this acquisition,” said Jim Schmitz, President, and CEO of Pacon Corporation. “These additional products support our mission to enable and inspire lifelong learning, imagination, and artistry by delivering a complete product category offering.”

“Mason Wells was pleased to support the Pacon management team in its acquisition of Chenille Kraft,” said Chris Pummill, Vice President at Mason Wells. He added, “The acquisition of Chenille Kraft’s assets enhances Pacon’s growth through adjacent arts & crafts categories sold to new and existing customers.” Chenille Kraft’s operations will be moved to Pacon’s facilities in Appleton, Wisconsin.

For more information, please visit the Company’s website at www.pacon.com.