Longreach buys pulp and paper industry supplier from Navis
The Longreach Group has acquired a majority interest in Amazon Papyrus Chemicals Holdings, a Hong Kong-headquartered chemical solutions provider to the pulp and paper industry, from Navis Capital Partners.
The size of the transaction was not disclosed. Navis bought the business in 2014 with a view to supporting regional expansion and operational streamlining. The firm committed $64.2 million from its sixth fund, which closed at $1.2 billion in 2010, according to AVCJ Research.
Established in 2000, Amazon Papyrus produces a range of chemicals and other products that improve efficiency and reduce waste in the papermaking process. In addition to Hong Kong, it has a presence in mainland China, Taiwan, Malaysia, Thailand, and India. Thailand and India are also production bases. The company has more than 400 employees.
Amazon Papyrus claims to generate over $100 million in annual revenue and have in excess of 350 customers in Asia and the Middle East. Michael Grundy, the company’s co-founder, said in a statement that Longreach would bring new ideas and different capabilities, notably potential expansion into Japan. The management team will be rolling over its interest and retain a significant minority stake in the business.
“When we invested in Amazon Papyrus, our objective was to bring Navis expertise to enhance the operational efficiency and market position of an already outstanding business. We worked closely with our management partners to accomplish this objective. The business performed strongly throughout COVID-19, demonstrating the strength of management and the resilience of the business model,” said Rodney Muse, a managing partner at Navis.
Longreach closed its most recent North Asia mid-market buyout fund at $650 million in 2019. It pursues deals in the $50 million to $250 million range, targeting companies where its network and execution capabilities in Japan can offer differentiated value. Industrial manufacturing is a prevalent theme, inside and outside of Japan. The ex-Japan portfolio currently includes Quasar Engineering, a supplier to medical device manufacturers.
BDA Partners served as exclusive financial advisor to Navis and Amazon Papyrus on the transaction. It also advised Amazon Papyrus when Navis invested in 2014.
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