Barings, one of the world’s leading investment managers, today announced it has provided a second lien debt and equity co-investment to support Mill City Capital’s recapitalization of Diversified Packaging Holdings, LLC. Headquartered in Blaine, Minnesota, Diversified Packaging is a provider of pre-press products and services to the packaging industry, serving commercial printing companies, corrugate packaging companies, and various other customers across the upper Midwest U.S.
“Barings is excited to partner with Mill City Capital and their portfolio company Diversified Packaging as the sole provider of senior secured term debt for the deal,” said Steve Jarvis, Managing Director in Barings’ Global Private Finance Group. “Diversified Packaging is an attractive investment opportunity due to its strong customer relationships, favorable industry tailwinds, and differentiated, value-add service offerings.”
“We are grateful to have secured financing from Barings to support Diversified Packaging’s future growth initiatives and look forward to embarking on this next stage of growth. We believe the Company is uniquely differentiated and well-positioned to continue expanding its customer relationships, product and service offerings, and geographic presence,” said Zander Rutlin, Partner at Mill City Capital.
This transaction expands Barings’ $32.78 billion* Global Private Finance platform, which leverages a deep bench of more than 80 investment professionals and a 30-year track record of providing financing solutions to sponsors while generating attractive risk-adjusted returns for investors.
About Barings
Barings is a $406+ billion* global asset management firm that partners with institutional, insurance, and intermediary clients, and supports leading businesses with flexible financing solutions. The firm, a subsidiary of MassMutual, seeks to deliver excess returns by leveraging its global scale and capabilities across public and private markets in fixed income, real assets and capital solutions.
*Assets under management as of March 31, 2024
About Diversified Packaging
Diversified Packaging is a manufacturer of flexographic plates for use in the corrugate packaging industry as well as a value-add distributor of pre-press products, specializing in printable plastics for printing, graphic arts, and signage companies. The Company operates across three brands – Plateworks Plus, Sharper Image Engravers, and Adhue Graphic Resources – with products ultimately used across a wide-range of end market applications, such as food & beverage, retail, consumer, and industrial industries, among others. The Company is headquartered in Blaine, Minnesota, and maintains a diverse customer base across the upper Midwest. For further information visit www.adhue.com, www.sharperi.net, and www.plateworksplus.com.
About Mill City Capital
Based in Minneapolis, Minnesota, Mill City Capital is a private equity firm that makes investments in lower middle market companies with enterprise values ranging between $15 million and $100 million. Mill City focuses on companies headquartered in the Midwestern United States, where Mill City Capital has built a vast network of relationships. Working together for more than fifteen years, the partners of Mill City Capital have led numerous investments across a variety of consumer and industrial sectors. For more information, please visit www.millcitycapital.com.
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