SMC Packaging Group purchased by Wisconsin company

Mark McNay: Green Bay Packaging gains foothold in central U.S. through the deal.

Bryan Hollenbach: SMC is perfect fit for Green Bay Packaging.

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Springfield-based corrugated packaging manufacturer SMC Packaging Group has been acquired by Green Bay, Wisconsin-based Green Bay Packaging Inc. in a deal that brings two companies with similar roots together.

Green Bay Packaging, which has 41 facilities in 16 states, this month announced it closed May 31 on the purchase of SMC Packaging Group for undisclosed terms. SMC Packaging Group keeps its name and roughly 550 employees and becomes a division of Green Bay Packaging through the acquisition, company officials say.

Mark McNay, SMC Packaging Group vice president and general manager who has been named president of the Springfield-based operation as part of the deal, said the company’s operations in the Queen City, Kansas City, Conway, Arkansas, and Tulsa, Oklahoma, fill a regional gap for Green Bay Packaging.

“They’re very strong in the upper Midwest and pretty strong in the Southwest, and there’s a big hole right there in the central U.S. that SMC fills quite well,” McNay said.

McNay now reports to Green Bay Packaging Executive Vice President Bryan Hollenbach, who similarly stressed the importance of the new territory.

“This fits perfect for us,” he said, noting Green Bay Packaging has a paper mill in Arkansas that’s close to SMC Packaging Group’s Conway operation.

Family business
Hollenbach and McNay drew parallels between the businesses, including their family-owned backgrounds.

SMC Packaging Group was sold to Green Bay Packaging by the families of late co-founders Ross Ausburn and Charles “Chuck” Bachus, who started the company in 1972.

Kevin Ausburn, the son of Ross, who most recently served as SMC Packaging Group chair and CEO, is staying on board in an advisory and leadership capacity, said Catharine Rathbone, corporate marketing and insights manager for Green Bay Packaging.

Rich Bachus, Chuck’s son, is retiring, said Hollenbach. Ausburn served as chair and CEO since 1982, and Bachus was president since the same year, according to the company’s website.

Randy Bachus, another of Chuck’s sons, is staying on board in a sales leadership role, Hollenbach said. Bachus had worked since 1987 as executive vice president of national accounts for SMC Packaging Group.

Matt Ausburn, Kevin’s son and Ross’ grandson, is taking on the role of vice president of finance, Hollenbach said. Ausburn previously was chief financial officer since 2013, according to the company’s website.

“As SMC Packaging Group expands beyond our founders’ vision, we are ready to embark on the next chapter by joining Green Bay Packaging. Their shared commitment to employee well-being and community pride aligns perfectly with our philosophy,” Kevin Ausburn said in a news release.

For Green Bay Packaging, third-generation leader Will Kress serves as CEO, said Hollenbach. The company was founded in 1933 by George F. Kress, who led the business as president 1933-60 and as board chair 1960-95. His son, James F. Kress, served as president and CEO 1960-1995 and board chair 1995-2019, and James’ son, Will, has been CEO and board chair since 2019, according to GBP.com.

“We are excited to unite two well-established, family-run businesses,” Will Kress said in the release. “We look forward to the continued growth and success of both SMC Packaging Group and Green Bay Packaging.”

Hollenbach and McNay said the companies have been industry peers for years. Green Bay Packaging learned of the acquisition opportunity after SMC Packaging Group engaged Forvis Mazars LLP to help it explore opportunities, Hollenbach said.

“They wanted to buy successful companies and provide the resources to help them grow,” McNay said. “That’s where we are. We were at that point where we wanted to take it to the next level.”

Building boxes
SMC Packaging Group and Green Bay Packaging are part of a worldwide corrugated board packaging market valued this year by research firm Mordor Intelligence at $189.8 billion. The market is expected to grow to $228.6 billion by 2029, according to the report.

Green Bay Packaging’s website points to $2 billion in annual revenues in a report released last year. In 2022, SBJ reported SMC Packaging Group was on pace to hit $200 million in sales. Green Bay Packaging’s Rathbone declined to disclose recent revenues for the companies.

Hollenbach, who said Green Bay Packaging largely sells business to business with a niche in manufacturing, characterized the industry as “mature.”

“As manufacturing does well, we do well,” he said. “Certainly, e-commerce has helped our industry.”

McNay said SMC Packaging Group’s purchase by Green Bay Packaging would provide resources that allow the company to further expand. SMC Packaging Group has a strong presence in light industrial, as well as food and beverage, similar to Green Bay Packaging, he said.

“I’m not sure there could be a better opportunity,” he said. “Once we get past the noise of the announcement, it’s business as usual.”