Knight Packaging Group Acquires Leading North American Specialty Packaging Manufacture

Chicago, IL - Knight Packaging Group, Inc., a portfolio company of Chicago lower-middle-market private equity firm Prospect Partners, LLC and DCM Acquisition Company, LLC, has announced the management-led acquisition of H.J. Jones-Sons Ltd. of London, Ontario, Canada, a North American designer and manufacturer of carded and folding carton packaging including specialty products such as "stretch pak" film cards, blister cards and gabletop cartons.

H.J. Jones gives Knight Packaging Group – whose other business unit, Knight Paper Box Company of Chicago, is a provider of specialty printed folding cartons to confectionary and consumer products customers nationwide – an expanded product line, deeper production capabilities and access to new geographic markets and industry segments.

Founded in 1913, H.J. Jones is a niche leader in the design, printing and construction of highquality packaging products for North American customers primarily in the nutritional, pharmaceutical, food, personal care and hardware markets. It is one of only a few North American companies that produce stretch-pack cards, foldover cards with shrink film windows that allow full view of the packaged products. Its other solutions include face blister cards for small items like batteries, razors and pens; gabletop cartons, which are folded at the top to produce a pouring spout and are typically used for liquid food products; and folding cartons.

"This is an exciting day for H.J. Jones, our employees and our customers," says Michael Jones, President. "We are delighted about this transaction and the confidence our new investment partners have shown in our management team and in the growth potential of our company."

Mr. Jones and his brother Douglas Jones, Vice President, are the fourth generation of the Jones family managing the business and will continue to run H.J. Jones in their respective positions. Thirty2 year veteran packaging industry executive Donald C. McCann of DCM Acquisition Company, an active board member of Knight Packaging Group, has been appointed interim Chief Executive Officer of Knight Packaging Group in conjunction with the acquisition.

"H.J. Jones is an extremely well-regarded niche packaging company with excellent production capabilities and a product line that complements that of Knight Paper Box Company," says William V. Glastris, Jr., a Principal at Prospect Partners. "Customers will now have access to the offerings of both companies: a broad set of innovative packaging solutions that help display, market and ultimately sell products."

Knight Paper Box Company is a leading designer and manufacturer of custom-printed folding carton boxes, including cartons with window displays, specialty metallic and foil finishes and electronic article surveillance tags integrated directly into products. Says Knight Paper Box President Thomas Kemp: "We have always been committed to investing in the finest technologies available. H.J. Jones brings a new dimension in technological capabilities that allows us to compete in new markets. For example, with our new flexographic printing equipment, we can run jobs up to eight colors and die-cut and even UV-coat the products – all at one time, quickly, at 800 feet/minute. This great, flexible equipment creates highly appealing packages for virtually every market niche, from food to beverage to pharmaceutical." Adds Mr. McCann: "Both companies have built superior reputations for their high-quality products, state-of-the-art technology and excellent customer service. I look forward to working together to continue to build on these strengths and pursue what we foresee to be significant growth opportunities."

Mr. McCann has most recently co-invested with Prospect Partners in other successful packaging companies including Spirit Foodservice Promotional Products, Inc. and Wrap Pack Products Corp. Before that, he was CEO and principal owner of ELM Packaging Corporation, a manufacturer of foam polystyrene packaging for foodservice and consumer markets that was sold in 1998. He also has served in executive positions at Mobil Packaging and Diamond International Corporation.

According to Mr. McCann, Knight Paper Box Company and H.J. Jones will continue to operate under their current names as separate divisions of Knight Packaging Group and will maintain their separate manufacturing plants in Chicago and London, Ontario. Knight Packaging Group is seeking additional acquisition opportunities of North American-based companies involved in similar niche packaging markets, says Suken N. Shah, Vice President of Prospect Partners.

SOURCE: Knight Paper Box Company