Meriturn Partners and Dunn Paper complete acquisition of Valentine Paper

Dec 09, 2005. /Lesprom Network/. Meriturn Partners, LLC and Dunn Paper, Inc. are pleased to announce their acquisition of the assets of Valentine Paper, Inc. in Lockport, Louisiana. Valentine Paper had been operating in bankruptcy since filing for chapter 11 protection on June 5, 2005. Meriturn purchased Valentine's senior secured debt from LaSalle Bank on November 10 in order to provide additional debtor-in-possession financing to the company, which enabled Valentine to continue operating until a sale could take place to Meriturn under its 'stalking horse' bid in the 363 auction process. Valentine Paper is a recognized leader in machine finished and latex-saturated papers, and one of the only specialty paper mills in the U.S. able to produce such products as wallpaper, Diazo (architectural), masking, and thermal base papers. The acquisition of Valentine Paper will specifically complement Dunn Paper's machine glazed ("MG") and online coating and waxing expertise, which makes Dunn a market leader in flexible packaging, wet- strength, grease and mold-resistant, and metalized-base papers. The combined Dunn and Valentine mills will have the capacity to produce over 140 000 tonnes of specialty paper serving a diverse customer base. Located in Port Huron, Michigan, Dunn Paper was a troubled mill acquired by Meriturn in October 2003, and since then has turned around its operations and built a strong platform for innovation, customer service, and reliability. The combination now extends this platform to Valentine. Valentine Paper produces specialty uncoated, coated, and latex-saturated papers, which are converted and used as wallpaper, water-resistant poster- board, masking tapes, Diazo (architectural) paper, and other specialty paper products. The company operates two Fourdrinier paper machines, and markets its papers primarily to large converting and printing operations worldwide. Valentine Paper was founded in 1954, is located in Lockport, Louisiana, and employs over 70 people Dunn Paper is a premier manufacturer of specialty and coated papers, serving flexible packaging companies, bag manufacturers, labelers, foodservice, and printing companies worldwide. The company is a leading North American producer of specialty coated-one-side and uncoated MG papers. The company operates 4 MG machines with online coating and waxing abilities in Port Huron, Michigan, and employs over 190 people. Dunn Paper was acquired by Meriturn Partners in October 2003, and has produced paper continuously since its founding in 1924. Meriturn Partners invests in corporate restructuring and turnaround opportunities where our capital, financial restructuring, and operational initiatives can return a company to a balance of revenue growth and profitability. Meriturn currently owns 5 portfolio companies, with combined annual revenue of over $275 million and 950 employees. Meriturn was founded in 2001 and has offices in San Francisco, California and Raleigh, North Carolina.