Pixelle Specialty Solutions, a specialty paper maker based in Spring Grove, said June 12 it landed “significant new funding” that positions it for future growth.
The financing includes amended credit facilities and an infusion of new capital from the company’s private equity backer, H.I.G. Capital.
“With this new support, we are well-positioned to take advantage of several key initiatives we have underway to improve our cost structure and invest in our manufacturing capabilities,” Pixelle CEO Ross Bushnell said in a statement.
Through a spokesperson, the company declined to share any additional details.
The announcement follows a credit downgrade in April from ratings agency S&P Global, which cited Pixelle’s “weak operational performance” and questioned its ability to make debt payments.
“We believe Pixelle is unlikely to withstand adverse events without needing a substantial capital injection over the next 12 months, even after factoring in cost-cutting that includes corporate staff and capital expenditures,” S&P analysts wrote in April.
It is unclear how the new financing will impact S&P’s outlook. An S&P spokesperson said the agency is still reviewing the recent transaction and is unable to comment.
But in his statement, Bushnell expressed confidence in Pixelle’s future.
“Our operational performance in Q2 of 2024 has shown significant improvement and we are committed to identifying and implementing additional improvements to our business in an effort to be the most reliable manufacturer of specialty papers in North America,” said Bushnell, who has been CEO since August.
The background: Pixelle formed from the specialty paper division of Glatfelter, a longtime York County company that moved to North Carolina in 2020.
The division was acquired in 2018 by private equity firm Lindsay Goldberg.
Lindsay Goldberg sold the company to H.I.G. in 2022.
Pixelle, which remained in Spring Grove after Glatfelter’s move, makes papers used in trade books, food packaging, envelopes and other applications. It has plants in Ohio and Wisconsin in addition to its facilities in Spring Grove.
