About the Transaction
Johnston Paper Company, Inc. (“Johnston Paper”) (johnston.biz) is a leading regional distributor of Jan-San and Food Service products. Founded in 1881 as an office supplies company, Johnston Paper has evolved into a leading provider of Jan-San and Food Service consumables serving a variety of end markets including grocery & supermarkets, restaurants & catering, industrial, hospitality & lodging, healthcare, building service contractors, and more. Based in Auburn, NY, Johnston Paper is known for their industry-leading Solutions Center and full-service product offering from providing equipment and service to sourcing products and supplies.
“It is truly amazing for me to see how a company in 1976 with two employees has grown to over $100 Million in Revenue, and I’m very excited about the next chapter for the Johnston and Envoy Solutions partnership,” said Mike May Sr., CEO of Johnston.
The buyer, Envoy Solutions, LLC (“Envoy”) (envoysolutions.com), is a leading regional distribution company focused on janitorial supply, packaging solutions, food service disposables and other specialty products. Envoy is a subsidiary of FEMSA (NYSE: FMX) the world’s leading bottler of Coca-Cola as well as a diversified platform with several different lines of business. Based in Glenview, IL, Envoy includes the following leading businesses: North American Corporation, WAXIE Sanitary Supply, Southeastern Paper Group, Daycon, North Woods, PJP, and NVISION. Envoy has over $1 Billion in annual Sales and more than forty distribution centers across the United States. The acquisition of Johnston Paper represents another important step in FEMSA’s strategic path to build a leading national Jan-San / specialty distribution platform.
Paramax served as the exclusive M&A advisor to Johnston Paper on this transaction. The Johnston Paper transaction represents Paramax’s 15th sale of a specialty distributor and Paramax’s 6th sale of a distributor in the Jan-San distribution space in the past 3 years. Paramax has extensive experience advising Specialty Distribution companies in a variety of end markets for premium valuations. Paramax Corporation is a FINRA-registered investment banking firm focused on sell-side M&A transactions at after-tax optimized prices. Paramax is headquartered in Williamsville, NY with an International reach through its partnership in Globalscope Partners Ltd., a group of international corporate finance and business advisors operating globally to support M&A transactions.