Transaction Marks the Firm’s First Manufacturing Investment and 12th Investment Since Inception

Acquisition Positions Dallas Plastics to Expand Best-in-Class Platform and Accelerate Growth in Attractive Medical & Food Packaging Sectors

Kevin Pierce Appointed Chief Executive Officer

SANTA MONICA, Calif., Oct. 7, 2020 /PRNewswire/ — Sole Source Capital LLC (“Sole Source” or the “Firm”), an industrial-focused private equity firm providing capital to North American lower-middle market companies, today announced the acquisition of Dallas Plastics (the “Company”), a leading manufacturer of blown polyethylene film with printing, embossing, and other value-added capabilities for the medical, food, and industrial end markets. Terms of the transaction were not disclosed.

Founded in 1989, Dallas Plastics is a leading independent producer of high-performance specialty films used in flexible packaging and other end-use markets. Dallas Plastics has established itself as a high quality, service-oriented manufacturer that utilizes leading-edge technology to best serve its customers. The films are made with the finest quality materials and are carefully processed in a controlled manner so customers consistently experience a superior product that is ideal for medical, food, and consumer applications. The Company has three manufacturing facilities in the United States, making it a strong choice for servicing any customer in North America.

As part of the transaction, Kevin Pierce, Dallas Plastics’ Chief Operating Officer, will assume the role of Chief Executive Officer. Founder Dennis Pierce will remain with the Company as a Senior Advisor.

By leveraging Sole Source Capital’s experience investing in leading industrial companies and its operating and M&A capabilities, this partnership will propel Dallas Plastics’ continued expansion across North America. The Firm will leverage Dallas Plastics’ strong reputation and network of relationships to source investment opportunities and execute its M&A strategy.

“Our team identified the flexible packaging space as an area of focus due to its attractive end markets, primarily medical and food. Dallas Plastics is the right cultural fit for our firm with a strong track record of integrity and a customer-first mentality. This is our 12th transaction, and another example of being the preferred partner for private companies. We will immediately implement management’s vision of investing in technology, adding capacity, and making acquisitions,” said David A. Fredston, Managing Partner of Sole Source Capital.

“Dallas Plastics’ differentiated approach and mission-critical products have positioned the Company as a leader in a fragmented industry,” added Scott Sussman, Partner, M&A at Sole Source Capital. “With an experienced management team, devoted customer base, and acquisition-ready infrastructure, we are confident that Dallas Plastics is poised to capitalize on a range of compelling opportunities for continued growth.”

“This investment is a testament to the tremendous efforts and hard work of the Dallas Plastics’ team, and demonstrates the high growth potential of our platform,” said Kevin Pierce. “Throughout the process, Sole Source has demonstrated a deep understanding of the flexible packaging space, and we have been impressed with their track record of building leading industrial companies. I am eager to take on this expanded role as we partner with them and continue expanding, both organically and through strategic acquisitions, while offering unparalleled customer service and quality to our customers.”

Current Capital Partners advised Sole Source Capital on the acquisition. Mesirow Financial served as the financial advisor to Dallas Plastics.

About Sole Source Capital

Founded in 2016 by David Fredston, Sole Source Capital is an operationally-focused lower-middle market private equity firm that targets investments in high-growth industrial sub-sectors including precision manufacturing, diversified distribution, packaging, and industrial services. Sole Source seeks to partner with strong management teams and founder-owned businesses that will benefit from the team’s operating and M&A capabilities. The Firm is headquartered in Santa Monica, California. For more information, please visit www.solesourcecapital.com or contact investor.relations@solesourcecapital.com.

About Dallas Plastics

Headquartered in Mesquite, Texas and with locations in Longview, Texas and Wentzville, Missouri, Dallas Plastics is a leading manufacturer of blown polyethylene film with printing, embossing and other value-added capabilities for the medical, food and industrial end markets. As experts in blown film manufacturing, the Company works to provide quality, integrity, value and innovation to their customers. For more information, please visit www.dallasplastics.com.

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