February 26, 2018

M&Q Packaging Acquires Flavorseal

High-Growth Seasoning Transfer Technology

Capital Partners® is pleased to announce that M&Q Holdings, LLC (“M&Q”), a portfolio company of Capital Partners Private Equity Income Fund II, LP (“CP Fund II”), acquired Flavorseal, LLC (“Flavorseal”) on February 8, 2018. M&Q was recapitalized in December 2015 with equity sourced from CP Fund II along with M&Q’s senior management team and was CP Fund II’s sixth platform investment. M&Q had previously acquired the operating assets and liabilities of Outlook Group Corp (“Outlook”) on October 17, 2016.

M&Q Holdings was attracted to Flavorseal’s strong management, culture of innovation, creativity, and its knowledgeable, customer‐focused workforce. In addition to Flavorseal’s flexible packaging, netting, packaging equipment and consumables products, M&Q is especially excited by Flavorseal’s Seasoning Transfer Technology, which incorporates seasonings and bold flavors into various forms of flexible packaging for its food processing customers.

Michael Schmal, President and CEO of M&Q Holdings stated, “We truly believe that Flavorseal’s Seasoning Transfer Technology will revolutionize the way packaging is utilized in the protein and food industries. Instead of just protecting and extending shelf life of food products, Seasoning Transfer Technology allows the packaging to become an integral part of the product itself, by enhancing the appearance, quality, taste and aroma to food. We think this technology has the potential to dramatically change the food processing industry, and we are fortunate that Chris and Colleen Carroll, who are the owners and founders of Flavorseal, chose M&Q to be their partner to accelerate this transformation.”

Chris Carroll, President and CEO of Flavorseal, agreed, “I am very proud of Flavorseal’s long history of developing cutting‐edge packaging products like Seasoning Transfer Technology. Working with M&Q will provide Flavorseal an exciting opportunity to continue expanding our innovative product pipeline that customers have come to expect and value.”

By combining Flavorseal with M&Q Holding’s other companies, M&Q Packaging LLC, and the Outlook Group LLC, the company plans to become a one‐stop shop for food packaging companies by offering Seasoning Transfer Technology, films and flexible packaging, netting products, carton board products, labels, disposable food service accessories, packaging equipment and value‐added services.

As with its other investments, Capital Partners® structured the initial M&Q recapitalization and the Outlook transaction primarily with equity and only a moderate level of debt financing to provide a strong balance sheet from which to grow and M&Q maintains an equity-rich balance sheet following this transaction.

Founded in 1998, Flavorseal (www.flavorseal.com) is a leading provider of proprietary spice transfer packaging, converted flexible packaging, netting, equipment, and supplies primarily for the food and food service end markets. Flavorseal has over 180 talented employees who operate out of its facility in Avon, OH. M&Q, Flavorseal, and Outlook are working together to use their combined capabilities to continue to improve solutions for their customers and drive innovation. There are no planned changes to management, staff, facilities, suppliers, or customers.

Founded in 1956 and headquartered in Schuylkill Haven, Pennsylvania, M&Q (www.mqplastics.com and www.PanSaver.com) designs and manufactures proprietary high-temperature resistant thermoplastic nylon, polyester, and polyamide packaging solutions for a variety of end markets. With more than 140 employees, the Company offers customers superior technology for custom packaging products with an ability to process different types of plastics, as well as deliver specific and specially-made solutions to various plastic applications coupled with a strong commitment to quality and customer satisfaction. M&Q serves over 1,500 active customers in the institutional, commercial, and home foodservice markets as well as the aerospace, defense, healthcare, pest control, and industrial manufacturing sectors.

Founded in 1977, Outlook Group (www.outlookgroup.com) is a leading provider of custom packaging solutions primarily food & beverage, consumer products and medical end markets. They focus on printing labels, cutting and printing on paperboard boxes, printing onto flexible packaging, and conducting assembly and / or packaging operations for customers using third party packaging and, in many cases, the customer’s product to create a finished good shippable directly to retailers. Outlook has over 275 highly-dedicated employees who operate out of two facilities in Neenah, Wisconsin.

Capital Partners and management remain focused on continued growth through organic initiatives and acquisitions.

Capital Partners (www.capitalpartners.com) is a private investment firm founded in 1982. Its principals have invested in more than 80 platform and add-on acquisitions across a variety of industries. Based on the combination of solid investment discipline and its high-equity approach, it has successfully partnered with management teams through multiple economic cycles. Capital Partners is currently investing a $600 million committed private equity fund.

Please contact the Capital Partners Investment Team with additional platform investment or add-on opportunities:
John Willert jwillert@capitalpartners.com
Thorsten Suder tsuder@capitalpartners.com

About Capital Partners

Capital Partners (www.capitalpartners.com) is a private investment firm founded in 1982. Our principals have invested in more than 90 platform and add-on acquisitions across a variety of industries. Based on the combination of solid investment discipline and our low leverage approach, we have successfully partnered with management teams through multiple economic cycles.