DiNapoli: Investment in North Country "Green"
Manufacturer Expected to Grow Business, Add Jobs
New York State Comptroller Thomas P. DiNapoli today announced a $6.9 million private equity investment in Climax Manufacturing Company, a leading eco-friendly manufacturer and supplier of folding cartons and recycled paperboards.
The investment was made through DeltaPoint Capital Management and Hamilton Lane as part of the New York State Common Retirement Fund’s In-State Private Equity Program. Climax Manufacturing, which was founded in 1902, has two upstate New York manufacturing facilities located in Lowville, and West Carthage, New York. The company currently maintains a staff of 262 full-time employees.
“This investment is a classic example of how the pension fund can identify profitable opportunities, while supporting industrial growth and job preservation right here in New York,” DiNapoli said. “With its extensive use of recycled materials in its paperboard and packaging products, Climax was a green company before green was in fashion. With heightened interest in eco-friendly products in the retail sector, the company is well positioned to capitalize on this movement.”
The investment will be used to support the company’s capital investment and growth plan which is expected to create new jobs over the next several years. The majority of the private equity capital was invested by DeltaPoint Capital III. Both investors are licensed SBIC under the U.S. Small Business Administration.
Climax’s paperboard division produces uncoated recycled board used in the graphics art industry and produces one-third of its electricity needs from hydro power. The packaging plant manufactures folding paperboard boxes found in many of the specialty retail stores and supermarkets in this country. The majority of these boxes are produced out of recycled paperboard materials supplied by Climax’s own paper mill.
Climax was founded in 1902 by Samuel L Hirschey. In 1934, the company purchased the Paperboard Divisions’ mill facility in Carthage, New York, and in 1961 expanded its emphasis on retail packaging. The company was purchased from the Hirschey family, who have managed the business successfully for more than a century
Through its In-State Private Equity Program, the Fund invests with private equity managers who seek to invest in New York State companies that require capital for growth. Created in 1999, the program targets investment of funds in the New York State economy. The program is designed to provide investment returns consistent with the risk of private equity while expanding the availability of capital for New York businesses. The program aims to help generate jobs and private sector investment in the state.
Since 2000, $330 million has been invested in 114 companies through the program. DiNapoli has committed an additional $408 million to the program since he took office more than a year ago, bringing the total amount committed to the program to $861 million.
About the New York State Common Retirement Fund
The $154.5 billion New York State Common Retirement Fund is the third largest public pension plan in the United States with more than one million members, retirees and beneficiaries from state and local governments. Comptroller DiNapoli is the sole trustee of the Fund and manages a diversified portfolio of public and private equities, fixed income, real estate and alternative instruments.
About DeltaPoint Capital Management
DeltaPoint Capital III, L.P. is the third pool of private equity capital managed by DeltaPoint Capital Management, LLC which targets investment in established, privately owned or closely held companies located in New York State. The principals of DeltaPoint Capital have been actively involved in providing investment capital to companies in New York State for the past 17 years. Through two prior capital funds and other investments, DeltaPoint’s principals have invested in several Upstate New York companies and are actively managing six of these prior investments. For more information, visit www.deltapointcapital.com.
About Hamilton Lane
Hamilton Lane is a private, independently owned firm which provides alternative asset management services to institutional investors worldwide. Founded in 1991 and headquartered outside of Philadelphia, Pennsylvania, Hamilton Lane manages over $10 billion in managed accounts and an additional $70 billion in advisory assets. Hamilton Lane’s clients and investors around the world include public and corporate pension funds, labor union funds, financial institutions, insurance companies, foundations and endowments.