Mason Wells Newsletter 2020 – Volume 1
January 1 2020
- The First Half of 2020
- Mason Wells Buyout Fund V, LP
- Mason Wells Acquires Schoeneck Containers, Inc.
- Mason Wells Announces New Hires
Navigating the Current Environment:
We hope that everyone is navigating these challenging times as best they can on both a personal and professional level. Here at Mason Wells, we are amazed by the spirit, resolve, and compassion the leaders and employees of our portfolio companies have displayed throughout the onset and progression of the COVID-19 pandemic.
Across our portfolio, which spans numerous industries, states, and operating environments, we have been gathering, observing, and recording a depth of information relevant to COVID-19, its impact, and now the gradual “reopening” of the country. We would be happy to share with our business relationships any insights we have gleaned with the hope there is a thought or two that could be helpful.
Drawing upon our longstanding history of collaborating with strong management teams, our investment strategy and approach will remain unchanged as we look ahead with a focus on companies that generally fit within the following parameters:
Seeking Good Companies with a Need for Patient Equity Capital:
These are delicate times, and we appreciate that business owners are focused on the health and welfare of their employees, customers, suppliers, and other stakeholders. In this current environment, even good companies may be experiencing a need for liquidity and equity capital due to unexpected market dynamics. Mason Wells is uniquely positioned and prepared to move quickly to support these companies through an accelerated de-levering transaction.
On June 8, 2020, Mason Wells announced the successful closing of Mason Wells Buyout Fund V and its related Executive Buyout Fund V with total commitments of $767 million. The fundraising effort for Buyout Fund V was launched earlier this year in February, targeting total commitments of $650 million from institutional investors. Mason Wells anticipates making between 10 and 15 new platform investments with Fund V over the next five to six years.
Similar to prior Mason Wells Funds, Fund V will focus on acquiring companies that operate in four industry sectors: Consumer Packaged Goods, Engineered Products & Services, Outsourced Business 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 investments in operating and financial performance at portfolio companies.
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.
On May 7, 2020, Mason Wells closed on the acquisition of Schoeneck Containers, Inc. Mason Wells acquired the business from the Schoeneck family and will partner with the existing management team to continue growing the business across its rapidly expanding end markets. SCI is the ninth platform investment for Mason Wells Buyout Fund IV, LP, and will be owned by Mason Wells, members of current management, and other co-investors.
Headquartered in New Berlin, WI with an additional manufacturing facility in Delavan, WI, SCI is a designer and manufacturer of rigid plastic packaging products for food and beverage, cleaning and disinfecting wipes, pet care, nutraceutical, and household and industrial cleaner applications. SCI’s products include blow molded containers as well as injection molded lids and closures, offering a differentiated comprehensive solution to customers. The Company’s design and development team bring innovation to customers through custom-designed products that are complemented by a robust stock product offering. SCI serves global and regional consumer packaged goods companies and contract fillers located throughout the Midwestern United States and Canada.
Since 1998, Mason Wells has invested in numerous Midwest-based companies in the packaging materials and converting sector supporting family ownership transitions.
“We are very excited about the opportunity to partner with Mason Wells to continue our strong growth,” said Tom Frank, President and Chief Executive Officer of SCI. “Their experience successfully building plastic packaging businesses will provide SCI the resources necessary to support our long-term growth initiatives. The entire management team is so excited about the prospects for SCI that we have all chosen to invest in the business alongside Mason Wells.”
The employees and suppliers of SCI have played an integral role in the Company’s growth and success and will continue to do so in the future.
“Mason Wells is very pleased to support Tom Frank and the rest of the existing management team in their growth strategy,” said Damon Thome, Director at Mason Wells. “SCI is a company we have tracked and admired for a number of years as the Company fits very well with Mason Wells in terms of our industry experience and commitment to supporting businesses based in the Midwest. SCI’s management, employees, and suppliers are all critical factors that have allowed the Company to consistently exceed the expectations of its customers. We believe SCI is well positioned to continue this success through attractive industry growth trends and its leading product development capabilities and world-class manufacturing operations.”
For more information, please visit the Company’s website at www.schoeneck.com.
Jacob Simons recently joined Mason Wells as an Associate. Prior to joining Mason Wells, Jacob was an Investment Banking Associate in JMP Securities’ investment banking group in its San Francisco office, where he focused on middle-market M&A advisory and capital raising engagements. At Mason Wells, Jacob is primarily responsible for supporting the funds’ investment activities, including investment analysis, financial modeling, market research, due diligence support, and the monitoring of portfolio companies. Jacob received a Bachelor of Arts degree in Economics from Macalester College.
Brady Walsh recently joined Mason Wells as the new Business Development Manager. Before joining Mason Wells, Brady was a Senior Consultant at Clerestory Consulting, where he focused on assisting clients in implementing effective organizational change. Prior to Clerestory Consulting, Mr. Walsh was a Senior Associate at PwC, where he worked on audit and advisory engagements. At Mason Wells, Brady is primarily responsible for initiating investment opportunities and new business relationships for the buyout funds and portfolio companies. Brady received a Bachelor of Science degree in Finance and Accounting from Marquette University.
Brady will succeed Dov Grumet-Morris, who has accepted a position within the Executive branch of the Federal Government. We congratulate Dov on his new position and wish him all the very best as he has played an integral role in elevating and expanding our business development efforts. He will always be considered part of the Mason Wells family.