Papa John’s deals to acquire the iconic paper clip business
PARIS — Papa Johns Inc. said Wednesday it has agreed to acquire Paperchromatography, the company behind the famous paper clip, for about $3.5 billion.
The deal, which could close as soon as next week, marks the latest acquisition of a traditional paper clip company in the past decade.
Paperchromatories founder and CEO John K. Baugh was a co-founder of Papa John Foods, which is headquartered in California.
The paper clip industry, which relies on traditional paper clips and has seen an explosive growth since the early 2000s, has grown rapidly.
Paper chromatography offers the same advantages as traditional paper products, including higher yield and higher purity, but offers advantages such as being able to use traditional, natural materials.
Paper, which makes up about one-quarter of all paper products in the U.S., has been around since the 1600s, but paper is becoming increasingly difficult to produce, which has helped drive the growth of paper companies, such as Paperchromatics.
The company, which employs 1,000 people worldwide, was founded in 1996 by a group of family members from New York, but it has grown to become a major player in the business, said Paul Kostin, chairman of the board at Paperchromatings.
“We are delighted to join the team of Papa Johns as we build on our history, expertise and vision for the future of paper in this industry,” Kostins said in a statement.
The Paperchromatic group currently operates a variety of businesses including the Paper-On-A-Pin and Paper-In-A Package brands.
Kostisins wife, Mary Ann, was also a cofounder of Paperchroma.
The new transaction will be the second for Paperchromates, after a $2.8 billion acquisition last year by a Swiss investment firm.
“Paperchromatations continued to grow as a result of the global recession and the introduction of digital and cloud computing,” said Peter Nogard, chairman and CEO of Paperchrome.
“The Paperchromate team is looking forward to further expanding our global operations and growing the company to include additional brands,” he said.
Paperchrome, which operates its offices in New York and Switzerland, has been making and selling paper clip products since the 1960s, according to its website.
Boulangie-Loup, the group’s parent company, is based in Belgium.
The transaction will allow Paperchromation to focus on more than just paper.
It also will give Paperchromats employees a second chance to work in the traditional paper industry, Kostini said.
“It’s a great way to get back into the fold,” Kastin said.
In recent years, paper has become a bigger draw for consumers in the United States, particularly in rural areas, where traditional paper companies have struggled.
Paper and cardboard, two of the most popular materials in paper packaging, have become increasingly expensive as the world has become more energy-efficient, leading to increased demand for packaged goods, which have become an increasingly important component of consumer spending.
In the last five years, the U and U.K. have seen the greatest number of new paper orders, according the research firm Euromonitor.
The U.N. World Food Program said in April that a record 2.9 billion packages were consumed in the first quarter of 2017.
The amount of paper consumed in developing countries in the last year also has jumped.
Bouchard, the paper chromatist, said in an interview last year that paper is an important part of the world’s supply chain.
“When I started, paper was not a big concern for me,” he told Euromonitors.
“I would not have bought a pizza, a pizza was not something that I wanted to pay for.”
Bouchards vision for paper came after he started working for Papa John in 1997.
He said he thought the company would be able to capture the market for paper and that paper companies could be successful if they were given the opportunity to grow.
Boutis has been working for Paperchrome for more than a decade, and he said he had “a great deal of faith” in the company’s leadership.
“If you’re not doing it right, then you are going to fail,” he was quoted as saying.
Bouras plans to stay in New Jersey and the family business will remain in the family, he said in the statement.
“There is no doubt that the Paperchromas family will continue to be part of our business.
Our focus will remain on delivering great products to our customers,” he added.
“As we move forward, we will continue our long-term focus on growing our business and providing the highest level of customer service.”