The MATLET Group Announces Management Backed Recapitalization Agreement

PAWTUCKET, RI—October 23, 2013—The MATLET Group has recapitalized and refinanced its senior and mezzanine indebtedness, combined with a new $8.5 million equity investment by Preferred Packaging Partners of Providence, RI. The MATLET Group owns two manufacturing companies—Packaging Graphics in Pawtucket and Central Florida Press in Orlando—as well as NOVA Marketing Services, a direct mail, inventory management and fulfillment company in St. Louis. Nearly half of the 450 employees are based in Rhode Island.

“Closing this agreement with Preferred Packaging Partners and our new lenders, Bank of America and Seacoast Capital Partners, finally gives The MATLET Group a clear runway to grow substantially,” said Gary Stiffler, CEO of The MATLET Group. “It also lets us take advantage of new opportunities in the fast growing CPG digital packaging market in the United States and Latin America. Here in Rhode Island, this new investment secures the employment of our 220 current employees and affords us the opportunity to expand. We have reduced leverage, achieved significant management ownership levels, and funding for new capital expenditures. Considering all of the positives, this is great news for all involved.”

Preferred Packaging Partners is a newly formed sponsor of mid-market private equity opportunities in the analog and digital packaging industry. “Having worked with Gary Stiffler and The MATLET Group management team as an advisor since late 2008, I witnessed the resiliency of the business through the most recent recession,” explained Mike Sweeney, managing member of Preferred Packaging Partners. “The collective acumen, deep industry experience and commitment of the executive team was critical during a period where they worked under pre-recession financing arrangements.”

“In buying out all existing non-management investors,” Sweeney continued, “we allowed these key managers the chance to own the majority of the common equity and align their interests with a flexible, patient capital provider that understands the growth plan and opportunities. The MATLET Group is a great platform to consolidate and focus on the rapid growth in digital packaging solutions. Bank of America and Seacoast were chosen to lead the debt financing aspect of the recap as they really understand the business and see the future opportunities.”

About The MATLET Group
The MATLET Group is a packaging and digital solutions provider with revenues in excess of $100 million. MATLET leads the industry with the first installations of the HP Indigo B2 format packaging solutions in the Americas. The MATLET Group combines the strength of its technology and equipment to deliver outstanding product packaging and exceptional promotional campaigns to Fortune 100 companies such as Procter & Gamble and Unilever. It also creates award-winning casual dining menus and provides sales materials and fulfillment solutions for industry leading customers, including Darden Restaurants and TGI Friday’s.

About Seacoast Capital
Seacoast Capital was founded in 1994 to make non-controlling subordinated debt and equity investments in privately-held lower middle market companies. Seacoast specializes in “sponsorless” transactions, preferring to invest directly with company owners or management teams, although it will selectively consider investments led by professional investor groups. Seacoast typically provides between $3 and $12 million of debt and equity capital for acquisitions, growth, shareholder buyouts, management buyouts and leveraged recapitalizations. While industry agnostic, Seacoast broadly invests in the specialty manufacturing, value-added distribution and business services sectors. Seacoast generally targets investments in companies with $10 to $150 million in revenue and $2 million or more of EBITDA. With offices in Boston and San Francisco, Seacoast is currently investing its third fund, Seacoast Capital Partners III, L.P.

Source: The MATLET Group.