New State Capital Partners of New York recently announced one of its affiliates made a majority equity investment in Wilmington Paper Corp. Terms of the transaction were not disclosed.
Stuart Lurie, CEO and son of the Wilmington Paper’s founder, Harvey Lurie, and other members of the management team will remain with the company and have retained a substantial minority stake in the Pine Brook-based business.
“Wilmington Paper has a differentiated niche in fiber waste, given its broad reach, longstanding relationships, and industry expertise, and is uniquely positioned to capitalize on the growing worldwide demand for recycled fiber content,” said Kurt Lentz, senior principal at New State. “We are delighted to be working with Stuart and his team as we seek to further extend the company’s reach within the fiber scrap and waste management sector through both organic initiatives and via add-on acquisitions.”
Wilmington Paper acquires scrap and post-commercial use fiber from a network of over 2,000 converting and waste hauling suppliers across the U.S.
Wilmington Paper and its suppliers and customers continue to benefit from increasing recycling rates driven by government regulatory requirements, consumer sentiment and a near doubling in global demand for recycled fiber over the last 20 years. According to the American Forest & Paper Association, the U.S. paper-fiber recycling rate has increased over 65% since the early 1990s.
“New State will be an invaluable partner as we embark on the next chapter of Wilmington Paper’s growth. Their resources will help us invest in the people, innovative technology and logistical equipment and solutions that will enhance our capabilities and maintain our competitive position in the years to come,” Lurie said in a prepared statement.
