Ara Partners Acquires Agricultural Pulp and Molded Fiber Products Producer, Genera

Genera's Vonore, Tennessee production facility uses domestically sourced and manufactured non-wood pulp to produce molded fiber products, such as take-out containers plates, bowls, and other food and consumer packaging products.

June 24, 2022 - Ara Partners, a private equity firm that specializes in industrial decarbonization investments, on June 22 announced that it has acquired Genera Energy Inc., a manufacturer of non-wood agricultural pulp and molded fiber products.

Ara has also committed up to an additional $200 million of capital to support significant expansion of its sustainable pulp and packaging business.

"There is an urgent need for solutions to the mounting global single-use plastics pollution problem that is driving insatiable demand for domestically sourced molded fiber products," said Kelly Tiller, Genera's CEO. "We are proud to partner with Ara, and appreciate their passionate support of our mission and their wealth of experience in scaling manufacturing operations and building sustainable businesses."

Genera's Vonore, Tennessee production facility is the largest vertically integrated non-wood agricultural pulp and molded fiber manufacturing facility operating in North America today, supplying customers with domestically sourced and manufactured non-wood pulp and molded fiber products. Proceeds from Ara's investment will be used to develop additional integrated manufacturing facilities and expand molded fiber production capacity in Vonore, enabling production of more than 5,000,000 take out containers, plates, bowls, and other food and consumer packaging products every day, all made entirely from locally grown fiber crops and agricultural residues.

Together, Ara and the Genera management team will expand the company's production footprint across the U.S. to address the growing demand for domestically sourced sustainable packaging.

Troy Thacker, Managing Partner at Ara Partners, commented, "The Genera team has the operational experience, strategic relationships, and drive to build the leading sustainable packaging platform in North America. We have been incredibly impressed with the team's depth of knowledge in biomass and molded fiber, as well as the immense customer interest it has garnered across foodservice, consumer packaging and medical applications."

Genera's previous owners — WindSail Capital Group, Coppermine Capital and Stairway Capital — will retain a minority interest in the company.

SOURCE: Ara Partners