In an effort to expand its footprint across the U.S., Marcal Paper, a leading manufacturer of eco-friendly bath, tissue and towel products headquartered in Elmwood Park, acquired Von Drehle Corp., a North Carolina-based provider of quality towel and tissue products for the away-from-home market.
In a Dec. 22 press release, Marcal said von Drehel will operate as a separate division, enabling the combined company to provide customers “with a broad product range and enhanced scale.” Financial terms of the transaction were not disclosed.
Founded in 1974, von Drehle employs more than 500 workers at its production sites in the southeastern U.S., as well as in Las Vegas, Nev. Its products can be found in industrial and commercial locations, medical offices, government complexes, airports and hotels, according to von Drehle.
At 90 years old, Marcal is one of the oldest tissue making companies in the country. After starting out as a small, family-owned business in Passaic County, it has grown to more than 900 workers across 10 facilities along the East Coast and in Las Vegas.
In January 2019, the Elmwood Park Marcal plant was the scene of a massive, 10-alarm fire that destroyed its manufacturing facilities and caused an immediate shutdown of the business. It resumed paper-making operations about a year after the incident.
In a statement, Marcal President and Chief Executive Officer Rob Baron celebrated the acquisition, saying, “We are excited to welcome the von Drehle associates to the Marcal family.”
“Over the past few years, our team has successfully weathered several storms, including the impact of the COVID-19 pandemic, and come out stronger for it. This transaction is the next step on our growth journey, and von Drehle is the right team with whom to partner. We share a commitment to being environmental leaders, community stewards and trusted employers and we take great pride in our shared histories as family-owned companies,” said Baron.
Randy Bergman, former chief executive officer of von Drehle, described the deal as “a stable path forward.” Besides giving employees an opportunity to “thrive,” Bergman said its customers “will be even better served as part of Marcal.”
“Our roots as a family-owned business and longtime leaders in the tissue industry have laid the foundation for a future that is stronger together,” he added.
Earlier this year, Marcal and real estate developer Crow Holdings announced plans to build a 206,000-square-foot, state-of-the-art industrial building on a portion of the paper company’s property that has sat vacant after being destroyed in the 2019 blaze.
Crow, which acquired the 11.87-acre site and secured site plan approval from Elmwood Park, will invest in the project alongside an affiliate of Atlas Holdings, the majority shareholder of Marcal.