( Rochester , NY ) DeltaPoint Capital Management, LLC, a Rochester, NY-based manager of private equity capital, today announced the closing of its investment in Climax Manufacturing Company. Climax Acquisition, LLC was formed by key Climax management and an investor group led by DeltaPoint Capital in order to purchase all of the capital stock of Climax Manufacturing. Co-investors include Hamilton Lane , who is investing funds from the New York State Common Retirement Fund, with additional financing provided by New Spring Capital, licensed SBIC under the U.S. Small Business Administration.
The acquisition was announced by the investment group on May 16, 2008. Climax Manufacturing employs 262 full-time employees at its Paperboard and Packaging Divisions located, respectively, in West Carthage and Lowville , NY . Climax is a manufacturer and supplier of recycled paperboard and folding cartons.
"We are very pleased and excited about this investment,” said David Waterman, managing director of DeltaPoint Capital. "Climax maintains a leadership position as an eco-friendly supplier of gift box packaging and producer of highly specialized matboards for the graphic arts industry. This advantage, along with a strong management team, affords the company tremendous growth opportunities.”
“This transaction allows Climax to more aggressively expand its sales channels and production capacity to capitalize on our strategic growth plan,” said Patrick Purdy, chief executive officer of Climax. "The transition will appear seamless to our customers, suppliers and employees."
"Investing in New York-based companies is one of my highest priorities," said Thomas P. DiNapoli, the New York State Comptroller and sole trustee of the New York State Common Retirement Fund. "Investing in Climax will not only help the firm to expand, but potentially will generate additional jobs for Upstate New Yorkers. It is critically important to support companies like Climax. I am proud that the fund helped make this transaction possible."
DeltaPoint Capital III is the third pool of private equity capital managed by DeltaPoint Capital Management, LLC, which targets investment in established, privately owned or closely held companies located exclusively in New York State . The principals of DeltaPoint Capital have been actively involved in providing investment capital to companies in New York State for the past 17 years. Through two prior capital funds and other investments, DeltaPoint's principals have invested in several New York State companies and are actively managing six of those investments. DeltaPoint Capital III is a licensed SBIC under the U.S. Small Business Administration.
The Comptroller's in-state investment program was recommended in 1999 by the State Legislature, with the goal of investing a portion of the pension fund in New York-based businesses. Comptroller DiNapoli has made the program a priority of his administration. Since its inception, the New York State Common Retirement Fund has committed $861 million to the program including DeltaPoint and Hamilton Lane . The program provides market- rate returns to the pension fund while providing capital for New York businesses.
Hamilton Lane is a private, independently owned firm which provides alternative asset management services to institutional investors worldwide. Founded in 1991 and headquartered outside of Philadelphia , Pennsylvania , Hamilton Lane manages over $10 billion in managed accounts and an additional $70 billion in advisory assets. Hamilton Lane clients and investors around the world include public and corporate pension funds, labor union funds, financial institutions, insurance companies, foundations and endowments.
Climax Manufacturing Company was formed in 1902 by Samuel Hirschey, who invented and subsequently patented and manufactured chicken incubators and brooders. About 10 years later the packaging division began to make fiberboard cheese drums to support local cheese production; it then branched out into meat packers and o the r folding-carton applications. Today the company is a leading producer of retail gift boxes and supermarket deli and bakery packaging.
In the mid 1930's Climax acquired Carthage Papermakers, a manufacturer of recycled, uncoated paperboard. While much of the Paperboard Division's recycled paperboard is still consumed by the Packaging Division, it has also become the leading producer of matboard used in picture framing supplied to the graphics arts industry.
“Climax Manufacturing Company had been a family owned and operated company for over 100 years, with a proud legacy of entrepreneurship, endurance and success. As a third-generation owner, I am excited to be part of the future growth and expansion of the business with DeltaPoint Capital,” said Liz Hirschey, president of Climax Manufacturing Company.