• December 1, 2021
  • North America
  • Industrials

H.I.G. Capital Announces the Sale of Sustana

MIAMI – December 1, 2021 – H.I.G. Capital (“H.I.G.”), a leading global alternative investment firm with over $45 billion of equity capital under management, is pleased to announce the sale of its portfolio company Sustana Group (“Sustana” or the “Company”) to funds managed by Blackstone Tactical Opportunities (“Blackstone”).

Sustana is a leading manufacturer of specialty recycled fiber and sustainable packaging and paper products. Using post-consumer recovered wastepaper, Sustana’s products are sold into high growth, high value end markets including food packaging, packaging and premium sustainable papers, where ESG-conscious brands value the ability to tangibly reduce their environmental impact. The Company’s four facilities have industry leading energy efficiency, water conservation systems, wastewater treatment technology and recycling of process by-products.

After a successful carve-out transaction from Cascades, Inc. in 2014, H.I.G. collaborated with management to expand the Company’s geographic scale and product offering through the acquisition of Fox River Fiber and made significant investments in the facilities, product offering, sales & marketing, technology and management, positioning the Company for future success in a market that increasingly values high quality sustainable products.

Fabian de Armas, Sustana’s CEO, said, “We appreciate H.I.G.’s value-added partnership and investment in Sustana. Together, we have built the leading sustainability platform in our markets and positioned Sustana for robust future growth. Blackstone’s investment is a strong endorsement of our Company and our highly talented team, and launches an exciting new chapter for Sustana.”

Ricky Stokes, Head of U.S. Lower Middle Market Private Equity at H.I.G., commented, “It has been a pleasure working with Fabian and the entire Sustana team. The success of this transaction for Sustana’s management, H.I.G. and its investors, is a direct result of the successful execution of the plan we devised together. We are proud of these accomplishments, which position the Company for continued success.”

Robert W. Baird & Co. Incorporated acted as exclusive financial advisor and McDermott Will & Emery LLP served as legal advisor to H.I.G. and Sustana in connection with the transaction.

About Sustana
Sustana Group, comprised of Sustana Fiber and Rolland, is committed to industry-leading product quality, continuous improvement and environmental stewardship – by innovating solutions that are better for business, better for the environment and better for society at large. Sustana Group is proud to provide a comprehensive, sustainable pulp and paper solution for customers throughout North America. For more information visit: https://www.sustanagroup.com/

About H.I.G. Capital
H.I.G. is a leading global alternative assets investment firm with over $45 billion of equity capital under management.* Based in Miami, and with offices in New York, Boston, Chicago, Dallas, Los Angeles, San Francisco, and Atlanta in the U.S., as well as international affiliate offices in London, Hamburg, Madrid, Milan, Paris, Bogotá, Rio de Janeiro and São Paulo, H.I.G. specializes in providing both debt and equity capital to small and mid-sized companies, utilizing a flexible and operationally focused/ value-added approach:

  1. H.I.G.’s equity funds invest in management buyouts, recapitalizations and corporate carve-outs of both profitable as well as underperforming manufacturing and service businesses.
  2. H.I.G.’s debt funds invest in senior, unitranche and junior debt financing to companies across the size spectrum, both on a primary (direct origination) basis, as well as in the secondary markets. H.I.G. is also a leading CLO manager, through its WhiteHorse family of vehicles, and manages a publicly traded BDC, WhiteHorse Finance.
  3. H.I.G.’s real estate funds invest in value-added properties, which can benefit from improved asset management practices.
  4. H.I.G. Infrastructure focuses on making value-add and core plus investments in the infrastructure sector.

Since its founding in 1993, H.I.G. has invested in and managed more than 300 companies worldwide. The firm’s current portfolio includes more than 100 companies with combined sales in excess of $30 billion. For more information, please refer to the H.I.G. website at www.hig.com.

* Based on total capital commitments managed by H.I.G. Capital and affiliates.


Ricky Stokes
Head of U.S. Lower Middle Market Private Equity

Matt Kever

H.I.G. Capital
1450 Brickell Avenue
31st Floor
Miami, FL 33131
P 305.379.2322
F 305.379.2013