Private Equity Firm Expands Sustainable Packaging Footprint with Acquisition of South Carolina's Paper Converters
In a move that consolidates its position in the sustainable packaging industry, private equity firm Foundation Investment Partners (FIP) has announced the acquisition of Paper Converters, a South Carolina-based manufacturer of paper-based packaging components. The deal was executed through FIP's platform company, Sustainable Packaging. Financial details were not disclosed.
Founded in 2002 in Walterboro, Paper Converters specializes in producing spiral-wound paper tubes, edge board, and sheeting. The company primarily serves the textile industry across the Southeastern United States, with a product line marketed as fully biodegradable and recyclable.
The acquisition is seen as a strategic fit within FIP's growing packaging portfolio. Earlier this year, FIP acquired American Spool & Packaging (Amspak), a converter of sheets and mill rolls into specialty packaging. Industry analysts suggest the pairing of Paper Converters and Amspak will create a more comprehensive supplier capable of offering integrated, sustainable solutions across complementary market segments.
"We are excited to partner with FIP and Sustainable Packaging to continue the company's growth trajectory," said Kline Smyly, who co-founded the company with Tanya Barnes. Both former owners will remain with the business to help steer its expansion. "There is a strong cultural alignment in our shared focus on customer service, value creation, and being a responsible employer."
David Partin, CEO of Sustainable Packaging, emphasized the operational synergy. "This acquisition allows us to develop centers of excellence across our facilities, ultimately driving greater value for our customers," he stated.
David Wood, Managing Member of FIP, highlighted the long-term industry trends bolstering the deal. "We have strong conviction in the growth potential here. The paper tube sector offers versatile, sustainable, and customizable solutions—attributes that are increasingly critical across diverse end markets. Paper Converters embodies these strengths perfectly."
Industry Voices: Reactions to the Deal
Michael Thorne, Packaging Industry Analyst at Berg Insights: "This is a logical, bolt-on acquisition. FIP is clearly building a regional powerhouse in sustainable, fiber-based packaging. The synergy with Amspak is immediate, offering cross-selling opportunities and operational efficiencies in the supply chain."
Sarah Chen, VP of Procurement at a Mid-Atlantic Textile Firm: "As a long-time customer, I'm cautiously optimistic. A larger, well-capitalized owner could mean more investment in R&D and capacity, which we need. My hope is that the focus on customer service Smyly mentioned remains a top priority."
James "Jim" Kellerman, former plant manager at a rival firm (retired): "Here we go again. Another good, local manufacturer gets swallowed up by private equity. They talk a big game about 'synergy' and 'value,' but in my 40 years, I've seen it often lead to cost-cutting, consolidation, and jobs eventually moving. I hope I'm wrong for Walterboro's sake."
Priya Sharma, Sustainability Officer at an Eco-Conscious Retail Brand: "This is encouraging news. The demand for truly circular, biodegradable packaging is exploding. Consolidation that strengthens the supply chain for proven, sustainable materials like these paper tubes is a positive signal for the entire market."
This report is based on an original announcement from Packaging Gateway.