A New Chapter for Atlas Holdings' Marcal Paper
September 1, 2022
Kristen Estell, Heartland Capital Strategies
In 2019, a ten-alarm fire destroyed most of the Marcal Paper plant in Elmwood Park, Bergen County New Jersey. But, almost a year later, Marcal had restarted operations, which you can read about in this previous Heartland Blog post.
Now Marcal Paper, a leading manufacturer of recycled and eco-friendly bath, towel, and tissue products, and Crow Holdings Development, a leading real estate development company, have announced plans to revitalize of a portion of the Marcal Property.
In a May 2022 press release, Marcal and Crow said Crow had acquired 11.87 acres in Bergen County, with plans construct a 206,000-square-foot, state-of-the-art industrial building. Construction alone, is projected to have a $34 million impact for the county and a $38 million impact for the state. It will create 140 temporary jobs, and the completed facility will create 240 full-time equivalent jobs while having an estimated $28 million in annual economic activity for New Jersey.
The joint press release said: “An affiliate of Atlas Holdings — Marcal’s majority shareholder — will also invest in the project alongside Crow Development, the partners said, exhibiting that company’s commitment to the region and its enthusiasm for the revitalization of the location.”
Atlas Holdings, long-time Heartland Capital Strategies supporter, is moving forward with this project that, very much exemplifies their investment approach: “Unlike many in private investment, we are not transaction-driven. We view transactions as a means to acquire and grow successful businesses over the long-term.”
Atlas Holdings partner, David Filippelli, further explained the importance of this particular investment: “The iconic Marcal sign was a source of great comfort and pride for those who lived or worked in Northern New Jersey. As the sign came into view along Route 80, people knew they were home. The business was equally iconic, a symbol of New Jersey’s one and only recycled tissue mill and the power of advanced manufacturing to transform lives for the better. That fire that shuttered operations in early 2019 could have been the understandable end of an amazing story. That was never our mindset at Atlas, or at Marcal; our partnership with our state, our community, our workforce and particularly the USW workers who helped build the business was too important. We felt an obligation to do everything possible to restart operations and re-invest the human and financial capital necessary to write the next great chapter for the business. Today, people are now back to work, a portion of the site that was sitting vacant is being redeveloped, and that next chapter is being written.”