Huron reaps 5x return on York sale

Detroit-based Huron Capital has booked a 5x return on its sale of York Label to Chicago’s Wind Point Partners.

Detroit’s Huron Capital Partners realised a 5x return on capital through its investment in York Label Holdings, exiting the Pennsylvania-based label maker through a secondary sale to Wind Point Partners. Terms of the deal were not disclosed.

In a statement, the firm indicated that under its watch, York expanded its product lines and diversified its customer base, resulting in a jump in both revenue and cash flow. York reportedly generates annual revenue exceeding $125 million.

Huron’s internal rate of return on the investment came to over 80 percent.

Ther has really been an increased need for label content on consumer packaging.

Peter Mogk, partner, Huron Capital Partners

The firm first invested in the company in September of 2002 through its $72 million debut private equity vehicle, The Huron Fund. The firm raised a $185 million follow-up fund last year.

York manufactures pressure sensitive labels and specialty packaging that are used in areas such as consumer products, healthcare, direct mail and security markets.

Peter Mogk, a partner at the firm, told PEO that Huron had identified certain industry trends when it first acquired the business, and cited those as helping to spur growth.

“There’s a lot of focus right now on the packaging and label market, as there has really been an increased need for label content on consumer packaging,” he said. Mogk further noted that areas such as the healthcare space, which is subject to federal regulations, and consumer products, are two areas that have been positively impacted.

Wind Point, based in Chicago, is buying the company alongside a separate buyout of Nebraska’s Industrial Label Corp. The firm, according to a report in the Deal, intends to merge the two companies, but has not yet determined where the combined business will be headquartered. Industry veteran Rich Egan has been tapped to head the company.

Wind Point is currently investing out of its sixth fund, Wind Point Partners VI, which closed last summer on $700 million.

The sellers in the York Label sale were advised by Piper Jaffray & Co., while Honigman Miller Schwartz and Cohn served as legal counsel.

Wind Point was advised by law firm Benesch, Friedlander, Coplan & Aronoff.