Griffin Serves as Investment Banker to Fairmont Group, Inc. in its Acquisition of Filtrona Tapes

Overview
Filtrona Tapes, Inc. (“Filtrona Tapes”), a Richmond, VA-based division of Filtrona Group Holdings Limited (“Filtrona Group”), has been an industry-leading manufacturer of high-quality tear tape for the past 75 years. Tear tape is a narrow polymer strip, typically with an adhesive, used to secure, authenticate or support packaging. Tear tape is widely used on a variety of packaging products, including cigarettes, paper and board packaging, various food and beverage items and cosmetics. Filtrona Group is a multinational conglomerate headquartered in Singapore with most of its business centered on producing cigarette filters. 

Situation
Fairmont Group, Inc. (“Fairmont”) is an affiliate of Profondas Capital, a Miami-based independent sponsor whose principals have decades of international private equity experience. Fairmont learned that Filtrona Group was exploring a divestiture of its non-core assets, including Filtrona Tapes. While Filtrona Tapes is predominantly manufacturing tear tapes for cigarette packaging, Fairmont saw the opportunity to significantly grow and diversify its product lines within the paper, board and food and beverage industries. As a small, newly-formed sponsor seeking to acquire its first portfolio company, Fairmont required additional bandwidth to both advise on and negotiate the terms of the acquisition, design an appropriate capital structure and to raise the necessary funds.  

Solution
Fairmont Group engaged Griffin Financial Group as its exclusive investment banker to provide buy-side and capital raising services to assist Fairmont in its acquisition of Filtrona Tapes. Griffin advised Fairmont on the terms of the acquisition, including assistance with the related negotiations. In addition, Griffin launched a competitive capital raise process with senior, subordinated and unitranche debt lenders, as well as institutional equity co-investors, to fund the acquisition. Ultimately, as a result of Griffin’s process, Fairmont selected Northwest Bank for senior debt financing and MainLine Investment Partners, LLC for preferred equity investment. 

For more information, contact John A. Lee, Senior Managing Director, at 610.205.6106, Andrew D. Rudner, Vice President, at 610.205.6102, or Christopher P. Adams, Associate, at 610.205.6016.