Appvion, Inc. announced today that the company has sold its Encapsys microencapsulation division to an affiliate of Sherman Capital Holdings LLC, a private investment firm based in Baltimore. The purchase price was $208 million.
Conditions of the sale include a long-term supply agreement whereby Encapsys will continue to produce and sell microcapsules to Appvion that Appvion uses to produce its carbonless paper. Mary Goggans, vice president and general manager of the Encapsys division under Appvion ownership, has been named president of the now independent Encapsys, LLC.
Encapsys discovers, develops and manufactures microencapsulation solutions for use in the building and construction, paper, bedding, and personal and household care industries.
Appvion formed the division nearly 10 years ago to leverage the company’s 50 years of experience, technical expertise and large-scale production capabilities for microencapsulation that it developed through its production of carbonless paper. Net sales for Encapsys topped $61 million in 2014. The business employs approximately 90 people at offices and research labs in Appleton, Wisconsin, and at a manufacturing plant in Portage, Wisconsin.