America’s Marcal Paper has increased its presence in the premium towel and tissue AfH market after acquiring von Drehle Corporation.
Following the purchase, Marcal Paper now operates production facilities in North Carolina, Mississippi, Tennessee, and Nevada, in addition to its locations in Pennsylvania, New Jersey, and Vermont, expanding its footprint to service customers all along the East Coast and the country.
Von Drehle Corporation will now operate as a division of Marcal Paper.
Rob Baron, President and Chief Executive Officer of Marcal Paper, said: “Today is an important day for Marcal Paper as we are excited to welcome the von Drehle associates to the Marcal family.
“Over the past few years, our team has successfully weathered several storms, including the impact of the Covid-19 pandemic, and come out stronger for it.
“This transaction is the next step on our growth journey, and von Drehle is the right team with whom to partner.
“We share a commitment to being environmental leaders, community stewards, and trusted employers, and we take great pride in our shared histories as family-owned companies.”
Baron told TWM that the growth of the AfH market in the United States has been driven by “pent-up demand for increased travel and leisure activity coming out of the Covid-19 pandemic”.
He added: “We are not seeing the dramatic shift towards premium products in the AfH market that is occurring in the At-Home space.
“The AfH market is seeking to meet demand with reliable and affordable products, and we at Marcal Paper are prepared to successfully service these customers, as we have for nearly a century.
“Today’s announcement marks the beginning of the next chapter, and an exciting growth step for our company.”
Randy Bergman, former Chief Executive of von Drehle Corporation, said: “Today’s news provides a stable path forward for von Drehle where our talented team members can thrive, and our customers will be even better served as part of Marcal.
“Our roots as family-owned businesses and long-time leaders in the tissue industry have laid the foundation for a future that is stronger together.”
Marcal Paper was founded 90 years ago, starting as a small, family-owned business and becoming a symbol of New Jersey’s industrial economy on the outskirts of the Great Falls in Paterson.
The company now employs more than 900 associates across 10 facilities along the East Coast and in Las Vegas, Nevada.
Von Drehle Corporation was founded in 1974 and is headquartered in Hickory, North Carolina.
The combined company provides customers with a broad product range and enhanced scale, expanding Marcal’s footprint to service customers all along the East Coast and across the country.
Terms of the transaction were not disclosed.