Conner Industries, a US lumber processor and leading provider of integrated packaging solutions, recently announced that it has received a substantial growth capital investment from Argentum and other existing investors, as well as a group of new investors. Members of Conner’s management team, including its Chairman, CEO and certain executives, also invested personally in the round of financing.
Conner also announced that concurrently with the closing of the growth capital investment, its senior lender, Wells Fargo, has renewed its $18 million line of credit.
The capital infusion will be used for working capital, to continue to upgrade the Company’s manufacturing plants and to finance strategic acquisitions.
Having recently completed two acquisitions – Golden Triangle and Continental Timber – Conner now has more than 500 employees and services over 1,900 customers nationwide from manufacturing plants located in 10 states, and processes/sells more than 300 million board feet annually. With a strong balance sheet, Conner is poised for growth, and is actively seeking experienced lumber sales personnel, lumber buyers and packaging specialists to join its teaIn connection with the closing, Conner also announced that one of its new investors, Mr. Hugh F. Culverhouse, a former federal prosecutor, has joined the Company as its General Counsel.
“We welcome an impressive roster of new financial backers of Conner Industries and are gratified that they, together with Argentum and our other existing shareholders, are supporting and investing in the growth of the Company,” said Joseph McCormick, CEO of Conner Industries. “This round of funding will enable us to continue to plan for growth, and improve our remanufacturing plants so as to continue to provide unparalleled quality and service to our customers, and expand and deepen our relationships with the U.S lumber mills, our most valuable strategic asset,” added Mr. McCormick.
“With a strong financial base, through strategic acquisitions, Conner will continue to expand and deepen its geographic market coverage in the lumber markets, as well as enter new strategic lines of business, including a deeper incursion into packaging,” said Mr. Kurien Jacob, Chairman of Conner Industries. “We welcome all ideas regarding strategic acquisitions and other opportunities from investment bankers and business brokers around the country,” added Mr. Jacob.
“Having been involved with over 80 U.S. growth companies through Argentum’s investment funds, what we value most about our companies, and what we view as a strong indicator of future success, is the management team’s loyalty, passion and commitment to the wellbeing of their company,” said Walter Barandiaran, a Managing Partner of Argentum. “I am gratified that several members of Conner’s senior management team have personally invested, and have confidence in the vision and future of Conner Industries,” added Mr. Barandiaran.