CNG Acquires Spicers Paper, Kelly Paper
PURCHASE, NY—Central National-Gottesman (CNG) has signed a definitive purchase agreement with a subsidiary of PaperlinX Ltd. to acquire its U.S. paper operations, which consist of Spicers Paper and Kelly Paper.
Spicers Paper, headquartered in Santa Fe Springs, CA, is a major U.S. paper distributor with 12 warehouse locations in the West and Midwest. Kelly Paper, headquartered in City of Industry, CA, operates a chain of paper stores with 48 locations across four Western states. Combined sales for both companies were approximately $500 million in the company’s most recent fiscal year. The closing is expected to take place on June 30, 2012.
“Spicers and Kelly are well-managed and respected businesses, and we are thrilled to have the opportunity to acquire them,” said Ken Wallach, chairman and CEO of Central National-Gottesman. “The existing management and staff of Spicers and Kelly have done an outstanding job. These are excellent businesses and we intend to operate both of them as they are, and under their existing brands.
“The Spicers and Kelly locations are a perfect complement to our 22 Lindenmeyr Munroe paper distribution facilities and stores, located on the East Coast and in the Midwest, and will provide enhanced coverage to our customers and suppliers,” added Wallach.
This transaction is CNG’s fifth acquisition of a paper merchant in the past three years, including four in the states and one overseas. It demonstrates CNG’s ongoing commitment to the paper distribution business and the company’s strong desire to grow, both organically and through attractive acquisition opportunities.