Duraco Specialty Materials

US-based manufacturer of engineered specialty materials.

Market leader in engineered specialty tapes serving attractive end markets: Point-of-Purchase (PoP), Appliance, Transit Packaging, Industrial, and Flexible Packaging
The company has over 70 years of experience and differentiates itself by having integrated coating converting and distribution capabilities.
Customer base includes WestRock, Menasha, Imagine Print, RR Donnelley, Whirlpool, GE Appliance, Hennessy Industries, ProAmpac, Mixtiles, Stoughton Trailer, and Donaldson Co.

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Acquired:

June 28, 2019

Transaction Type:

Cross-Border, Corporate Carve-Out

Acquired from:

Essentra PLC

Industry:

Packaging, Paper, & Specialty Materials

Headquarters:

Forest Park, Illinois

Source:

Competitive Auction Process

Status:

Owned

Transaction Highlights

Sourced through OpenGate’s 10+ year relationship with the seller, Essentra PLC. Following a discussion with Essentra in Q4’18, a sales process was launched under new Essentra leadership.

Investment Merits:

Growth Opportunity: Non-core asset with numerous restructurings, sales force re-organizations, and poor IT systems
Market Leading Position: #1 in niche NA PoP market-based service orientation and cost position
Operational Improvements: Potential to realize significant pricing, sourcing, and manufacturing efficiencies by 2024
Acquisitions: Potential add-ons could increase scale, create cost synergies, and diversify the end market concentration outside of PoP

Value Creation

Running on independent ERP, network, and website platform
Five add-on acquisitions were completed, including Infinity Tapes, Filmquest, Rayven, 3 Sigma, and Strata-Tac
New sales leader joined in July 2020, and the commercial team has been re-organized by geography
Right-size footprint via facility consolidations and network optimization; leverage scale to drive sourcing savings