Chartwell Advises Paper Machinery Corporation on the Transition to 100% Employee Ownership


Chartwell is pleased to announce Paper Machinery Corporation (“PMC” or the “Company”) has completed the transition of 100% of the Company’s stock to its employees (the “transaction”) through a newly established Employee Stock Ownership Plan (“ESOP”).  Chartwell acted as the exclusive financial advisor to PMC throughout the transaction, providing comprehensive counsel on the transition to ESOP ownership and securing the related senior and mezzanine financing utilized to provide liquidity to the shareholders. Following an efficient, comprehensive financing placement and ESOP transaction process, the transition to employee ownership was completed on schedule on April 29, 2016. 

Founded and headquartered in Milwaukee, Wisconsin and guided by three generations of the Baumgartner family, PMC is the worldwide leader in the manufacture of paper cup and container forming machines used to produce consumables for brands such as McDonald’s, KFC, Starbucks, and Tim Hortons.  The current proprietors, Donald and John Baumgartner, considered the full spectrum of ownership transition alternatives, including a sale to private equity or a strategic acquirer, but quickly determined an ESOP was the preferred outcome.  The shareholders resoundingly agreed that creating an ESOP was the right ownership transition strategy for PMC as it rewards the employees who have helped to make the Company the global leader in the design and manufacture of paper cup and container forming machines. The chosen strategy also ensures the 65+ year old business will remain an invaluable asset to the local community. 


The ESOP is great for our employees and great for Milwaukee. After watching my father sell several businesses to customers and competitors, nothing brings me more joy than to tell each PMC employee they will now share in the success of the Company and can be confident PMC is committed to them, their families, and this great city.  While we could not be more pleased with the outcome of the transaction, we would not have been able to realize this success without the tireless efforts of Chartwell and their steadfast dedication to providing unbiased, thoughtful counsel.  Not only did they deliver on or exceed each of the expectations they laid out for us, Chartwell also orchestrated the transaction to a precise calendar, ensuring that closing occurred exactly on schedule.  I truly appreciate everything Chartwell has done for us and PMC, and I am the first to recognize that we could not have completed the transaction without them. 

Donald Baumgartner, Founder, Former Chief Executive Officer, and Chairman of the Board of Directors
Paper Machinery Corporation 


The transition to employee ownership will preserve PMC’s legacy for generations to come right here in Milwaukee.  PMC is a family-owned company and our employees are part of our family, so an ESOP seemed like the logical next chapter in the history of this great Company founded by my grandfather and father.  I could not be happier or more impressed with Chartwell for all of the hard work they invested into ensuring that PMC’s ESOP began with every available advantage and that we, as shareholders, achieved or exceeded all of our objectives – economic and otherwise. 

John Baumgartner, Former President and Member of the Board of Directors
Paper Machinery Corporation 


Without Chartwell’s dedication, professionalism, and expertise, PMC’s ESOP would not have come together nearly as superbly as it did.  PMC chose Chartwell as our financial advisor because of their reputation and expertise, and their delivery far exceeded our expectations.  Throughout each step of the process, Chartwell’s Corporate Finance team provided valuable, in-depth guidance on all alternatives available to PMC and, in particular, the structuring and financing of the transaction. As Chief Financial Officer, I am very comforted by Chartwell’s objective perspective provided in all aspects of the transaction, but particularly in regards to the final negotiations and structuring of the financing to ensure that I have the flexibility I need to fund PMC’s ongoing growth and unrivaled success. 

Scott Koehler, Chief Financial Officer and Member of the Board of Directors
Paper Machinery Corporation




Paper Machinery Corporation is the world's leading source of high performance forming machines for paperboard cups, containers, and custom packages.  Founded by J.R. and Donald Baumgartner in 1951, PMC now has over 250 employees that together serve a global market with more than 3,000 installations in over 40 countries. PMC’s corporate headquarters and manufacturing facility is located in Milwaukee, Wisconsin.  For more information about PMC, please visit


Chartwell provides comprehensive financial advisory solutions and investment banking services to the middle market.  With substantial corporate finance and capital markets expertise, the Chartwell team works with clients and their advisors to deliver independent, solutions-based advisory services that are unbiased to outcome, free from conflicts, and focused on optimizing client objectives.  For more information about Chartwell, please visit  For additional information on this transaction, please contact Greg Fresh at 612-230-3125 or or Ted Margarit at 612-230-3126 or

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