PaperWorks Expands Sustainable Packaging Network with Color Craft Acquisition

Omaha, NE – November 13, 2025 – PaperWorks Industries Inc., a leading North American producer of 100% recycled paperboard and specialized folding cartons, has acquired Color Craft Graphic Arts, a key player in the folding carton market. The deal, announced earlier this month, expands PaperWorks’ integrated network and underscores the growing demand for sustainable packaging solutions.

This acquisition isn’t just about expanding capacity; it represents a strategic move within a broader industry trend towards circularity and eco-conscious materials. The deal’s implications extend beyond the two companies involved, signalling a shift in how packaging is designed, produced, and consumed.

A Strategic Fit Driven by Sustainability

PaperWorks, known for its commitment to 100% recycled paperboard, identified Color Craft as an ideal partner due to its geographic alignment, diverse customer base, and shared values. The acquisition adds Color Craft’s Manitowoc, Wisconsin facility and 120 employees to PaperWorks’ portfolio, bringing the total to two paperboard mills and six converting facilities across the United States and Canada.

“This acquisition aligns with our strategy of growth and further supports our ongoing investment and commitment to our customers,” stated a representative from PaperWorks. The company is betting on the increasing demand for environmentally responsible packaging options, fueled by consumer preferences and stricter regulations.

Color Craft, a recognized player in the folding carton space, was equally enthusiastic about the deal. A representative from Color Craft highlighted the benefits of joining a larger organization with mill integration. “We are thrilled to join an organization that emulates our values and has an outstanding reputation in the industry. This is a great opportunity for the Manitowoc team to thrive within a larger folding carton network and leverage mill integration to deliver even greater value and service to our customers.”

The Rise of Sustainable Packaging

The timing of the acquisition coincides with a significant shift in the packaging industry. Regulatory pressures, such as the European Union’s Packaging and Packaging Waste Regulation (PPWR) and California’s SB 54, are pushing companies to adopt more sustainable practices and increase the use of recycled content. Simultaneously, consumers are actively seeking out products with eco-friendly packaging, driving demand for alternatives to traditional plastics.

The global folding carton packaging market is projected to reach 54.11 million tonnes by 2030, with a CAGR of 4.40%. This growth is fueled by the expansion of e-commerce, the premiumization of consumer goods, and a growing awareness of environmental issues. Paper and paperboard are leading materials in the sustainable packaging market, holding a 40% market share.

The demand for circularity and recycled content is creating both opportunities and challenges for the industry. While the push for sustainability is driving innovation and investment, there are concerns about potential supply shortages of high-quality recycled materials, particularly food-grade plastics. This is prompting companies like PaperWorks to focus on optimizing their recycling processes and securing access to reliable sources of recycled feedstock.

Mesirow Investment Banking Facilitates the Deal

The transaction was facilitated by Mesirow Investment Banking, a leading advisor in the packaging sector. Mesirow has a long history of success in the packaging M&A landscape, having completed over 220 transactions in the last 25 years.

“We are honored to have advised Color Craft on a transaction that aligns with its culture and strategic vision,” stated a representative from Mesirow. “Mesirow’s packaging team maintains deep relationships across the packaging landscape, which have resulted in a long history of delivering successful outcomes for clients.”

The firm’s expertise in the packaging sector and its ability to identify strategic buyers were instrumental in bringing the deal to fruition. Mesirow’s involvement highlights the importance of specialized advisors in navigating the complexities of M&A transactions.

First Capital Partners Exits Investment in Color Craft

Private investment firm First Capital Partners, which invested in Color Craft in 2016, successfully exited its investment through the acquisition by PaperWorks. First Capital Partners focuses on providing equity and subordinated debt financing to lower middle-market companies. The exit of Color Craft represents a typical outcome for a private equity firm, demonstrating its ability to identify, invest in, and grow promising businesses.

“This acquisition is a testament to the strong performance of Color Craft and the value creation achieved through our partnership,” stated a representative from First Capital Partners. “We are proud to have supported the company’s growth and are confident that it will continue to thrive under PaperWorks’ ownership.”

Looking Ahead: The Future of Sustainable Packaging

The acquisition of Color Craft by PaperWorks is more than just a business transaction; it is a signal of the evolving landscape of the packaging industry. As sustainability becomes increasingly important, companies that prioritize eco-friendly practices and invest in innovative solutions will be best positioned to succeed.

The future of packaging will be defined by circularity, recyclability, and a commitment to reducing environmental impact. Companies like PaperWorks, with their focus on recycled content and sustainable materials, are leading the way towards a more sustainable future for the packaging industry. The industry is also watching the development of biodegradable and plant-based materials, and innovations in thinner, reusable labels. Smart packaging solutions leveraging IoT and AI are also expected to play a larger role in reducing waste and optimizing supply chains.

The acquisition of Color Craft by PaperWorks is a strategic move that positions both companies for success in a rapidly evolving market. It underscores the importance of sustainability and the growing demand for eco-friendly packaging solutions.