IP to acquire New Jersey paper distributor Central Lewmar
International Paper has agreed to acquire Central Lewmar LLC, one of the largest privately held paper and packaging distributors in the United States, from Philadelphia-based private equity firm Chrysalis Capital Partners, Inc. for approximately $185 million, subject to customary closing and post-closing conditions. The acquisition is expected to be complete by mid-September.

The acquisition includes all of Central Lewmar’s business units and subsidiary companies. Privately held Central Lewmar is a large Newark, N.J.-based distributor of printing and publishing papers with more than $900 million in 2006 revenues. It will become a division of xpedx.

International Paper’s distribution business, xpedx, will operate Central Lewmar as a business unit within its multiple brand strategy. xpedx is one of North America’s largest business-to-business distributors.

Founded in 1899, Central Lewmar is one of the largest privately held paper and packaging distributors in the United States. Serving 6,500 customers, the company has annual sales of approximately $900 million and 400,000 square feet of warehouse space. The company employs approximately 550 people at three hub centers, 22 offices, and 14 locations, including Strategic Paper Group, Whiteman Tower, Andrews Paper House of York, Buff-Pac, Central Lewmar International, Central Lewmar/MidAtlantic, Central Lewmar/Newark, Central Lewmar South, Automated Machine and Control, First State Paper, Geo. W. Millar, Marquardt & Company, McAliece Imaging Products, and eight PickQuick Papers stores.

Executives at xpedx said North America printers and publishers would not see any immediate changes following the close of the acquisition. The planned acquisition would enable both Central Lewmar and xpedx customers to continue to access a wide choice in supplies and services.

Central Lewmar’s management team is to remain in place and all Central Lewmar companies are to continue doing business under their existing names.

“The combination of xpedx and Central Lewmar’s resources and local market presence will increase benefits for customers of both companies,” said Jeff Higgins, xpedx corporate director of marketing services. “xpedx and Central Lewmar will have the broadest, most competitive offering of the products and services printers and publishers need every day.”

“Central Lewmar is a well-run company with an excellent reputation for customer service and strong customer relationships, making it an obvious fit for xpedx,” Higgins added.

Central Lewmar is on the ground in 14 locations in nine northeast and Mid-Atlantic states and has more than 6,500 customers, primarily printers and publishers. It has more than 400,000 square feet of warehouse space. Strategic Paper Co., a large distributor of publishing papers, will operate alongside xpedx-owned Bulkley Dunton, also a large U.S. distributor of publishing papers.

Both companies serve magazine and book publishers as well as the retail, catalog, advertising and direct mail industries.

Bulkley Dunton and Strategic Paper are both New York City-based.

The nine PickQuick Stores owned by Central Lewmar will be affiliated with the xpedx-owned network of more than 140 retail paper and graphics stores across the U.S., Canada and Mexico.