Sky Island Capital's portfolio company, Pacific Paper Tube Inc., has acquired Paper Tubes and Sales Co., enhancing its product offerings and market reach.

Target Information

Sky Island Capital ("Sky Island"), a Dallas-based lower middle market private equity firm, has announced that its portfolio company, Pacific Paper Tube Inc. ("Pacific Paper Tube"), has acquired Paper Tubes and Sales Co. ("Paper Tubes and Sales" or "the Company"). Founded in 1976 and headquartered in Dallas, Texas, Paper Tubes and Sales is a leading independent manufacturer of paper cores, tubes, and composite cans in the United States. Since its inception, the Company has been owned and operated by Scott Stewart and his family, building a strong reputation in the industry.

Paper Tubes and Sales serves a diverse clientele across the United States, encompassing both multinational corporations and small family-owned businesses. The Company specializes in manufacturing paper tubes and cores, similar to those produced by Pacific Paper Tube, as well as composite cans used across various sectors, notably packaging for snack foods, seasonings, baking products, and drink mixes, among others. With a 120,000 square foot facility and a dedicated workforce of over 40 employees, Paper Tubes and Sales plays a crucial role in the packaging industry.

Industry Overview

The paper tube and packaging industry in the United States has shown consistent growth, driven by increasing demand from various sectors, including food, pharmaceuticals, and consumer goods. With the rise in e-commerce and the