Company type | Private company |
---|---|
Industry | Pulp, paper, metal, packaging and forest products |
Founded | 1886, New York City |
Headquarters | Purchase, New York, United States |
Key people | Kenneth L. Wallach, Executive chairman, Andrew Wallach, President and CEO |
Revenue | $9.3 billion USD (2023 Forbes Estimate) |
Number of employees | 4,000 |
Website | www.cng-inc.com |
Central National-Gottesman Inc. (CNG) is one of the world's largest distributors of pulp, paper, packaging, nonwovens & fibers, tissue, metals and wood products. The company employs over 4,000 staff in more than 150 locations in 48 cities across North America and in 29 countries around the world, including 43 warehouses and 46 retail stores.
CNG operates through three divisions: The Central National Division, a global distributor of pulp, paper, packaging, nonwovens & fiber, tissue, metals and wood products; the North American Distribution Division, comprising three regional paper distributors which supply a range of paper, packaging and products to commercial printers, large office and sports facilities and corporate end users; and the Lindenmeyr Publications Group, which supplies paper to the book, magazine, catalogue, retail and direct mail industry.
In 2019, Crains New York Business listed CNG as the 5th Largest Private Company in New York, with a 2018 revenue of $6.2 Billion, which is a 17% increase over 2017 revenue. [1]
With 2021 revenues of $7 Billion, Forbes ranked CNG 66th in its annual list of "The Largest Private Companies", [2] and Crains New York Business listed CNG as the 11th largest private company in the New York region. [3]
In 2023, Forbes ranked CNG #58 in their list of America's Largest Private Companies with total revenue of $9.3B (Estimated).
Founded in Manhattan, New York City, in 1886 as M. Gottesman & Company, the firm was substantially expanded under his son D.S. Gottesman in the first half of the 20th century. [4] When D.S. Gottesman first started, he was a founding partner of The Central National Bank in New York City, which, through a series of mergers, the bank became part of JPMorgan Chase & Co. After the sale of the bank, the paper company has continued to grow both organically and through acquisition. In 1984 CNG entered the paper distribution business in the Northeast and Mid-Atlantic regions of United States through the acquisition of Lindenmeyr Paper Corporation, [5] followed by D.F. Munroe Company in 1988, [6] Communication Paper Corporation in 1991, and Perkins & Squier Company in 1998. [7]
CNG's paper distribution business expanded its geographical footprint in the next decade, opening branches in new locations–Richmond, Chicago, Milwaukee and Durham, NC–as well acquiring several paper distributors in existing markets: the Hudson City Division of Frank Parsons, Inc. in 2009; [8] the Frank Parsons Fine Paper Division in 2010; [9] Hudson Valley Paper Company in 2011; [10] and both Domtar Corporation's Ariva paper merchant business [11] and Bradner Central's paper distribution business in 2013. [12] Geographic expansion continued with the purchase of Spicers Paper, Inc. and Kelly Paper on the West Coast in 2012. [13] In 2015 CNG entered the Canadian paper distribution market with the acquisition of Spicers Canada. [14]
With continued expanision, CNG moved their headquarters from 100 Park Ave in Manhattan to Purchase, NY. Today, over 300 employyes are based in the Purchase, NY headquarters.
Other areas of CNG continued to expand as well, including the 2013 acquisition of A.T. Clayton, a leading distributor of paper for the magazine, catalogue and direct mail segment. [15] CNG entered the plywood trading business in 2014 through the purchase of Hudson Trading and the North American operations of the Danish forest products company DHL.
After opening an office in Puerto Rico in 2017, CNG now distributes structural steel and semi-finished aluminum products.
In May 2019, CNG's Spicers Paper Division announced it had acquired Premiere Packaging Industries, Inc (PPI), a full-line packaging and office supply distributor based in Southern California. PPI's President John Luyben will continue to serve as President and will report to Spicers President Jan Gottesman.
The company was run from 1956 to 1979 by Ira D. Wallach (son-in-law of D.S. Gottesman). His son James G. Wallach, who launched the company’s expansion into the North American paper distribution business, was CEO from 1979 until his death in 1998. [16] Another son, Kenneth L. Wallach, became CEO in 1998, leading the company through a 17-year period of significant geographic and financial growth. [17] He assumed the position of Executive chairman in 2015. Andrew M. Wallach (son of James G. Wallach), a member of the fifth generation of the founding family, was named President and CEO in January 2015. [4]
The Central National Division is focused on the global sales, marketing and distribution of pulp, paper, packaging, wood products, and metals.
Some of Central National's top clients include Westrock, Domtar, International Paper, Walmart & Amazon (company)
The Lindenmeyr Central is focused on selling specialized paper and printing services for retailers, catalogers, publishers, direct marketers & financial services providers.
The Lindenmeyr Book Publishing Papers is focused on selling and disturbing a wide range of paper products to the book publishing community.
Lindenmeyr Munroe is focused on selling paper, packaging, wide format, and facility solutions across the United States. Lindenmeyr is based in Teterboro, NJ and has over 50 warehouses mostly located in the Northeast, Mid-Atlantic, Midwest and South. In 2022, CNG/Lindenmeyr Munroe acquired Lewis Paper, based in Addison, IL.
Kelly Spicers is focused on selling paper, packaging, wide format, and facility solutions across the West Coast of the United States. Kelly Spicers is based in Santa Fe Springs, CA and has 27 offices and warehouses across the Western United States. Some of Kelly Spicers' top clients include Wynn Resorts, Disney, Gap Inc., Gilead, Pepsi, MGM Resorts, Delta Dental and John Paul Mitchell Systems.
Spicers Canada, similar to Kelly Spicers is focused on selling paper, packaging, wide format, and facility solutions across Canada. Spicers Canada is based in Vaughan, Ontario and has 16 officers and warehouses across Canada.
S.P. Richards is an Atlanta, GA based, Wholesale Distributor of office products dealers, JanSan distributors, online e-tailers. SPR operates from a network of 30 full-stocking distribution centers strategically located across the U.S. to support more than 8,000 resellers. SPR was originally founded in 1848 but was purchased by CNG in 2023.
Formally the Investment Division of Central National-Gottesman, Greenhaven Associates is a private investment management firm with approx. 100 clients and $10.5 Billion under management. Edgar Wachenheim III is the founder, CEO and Chairman of Greenhaven Associates. Ed Wachenheim is married to Sue Wallach Wachenheim, the daughter of Ira D. Wallach who is the former CEO of Central National-Gottesman. Greenhaven clients include wealthy families, university endowments and nonprofits. Greenhaven is based in the same building as Central National-Gottesman and invests with a three- to four-year time horizon and is known to pay little attention to short-term or relative performance or to predict on the near-term direction of the stock market. According to CNBC, from 1988 to 2017, the average annual return of a Greenhaven portfolio had been roughly 19 percent.
Ed Wachenheim published his first book in 2018, titled "Common Stocks and Common Sense: The Strategies, Analyses, Decisions, and Emotions of a Particularly Successful Value Investor". Shortly after announcing his book, Wachenheim was one of the featured speakers at the 2018 Delivering Alpha conference, and was interviewed by CNBC anchor Jim Cramer.
Boise Cascade Company is an American manufacturer of wood products and wholesale distributor of building materials, headquartered in Boise, Idaho.
Domtar Corporation is a North American pulp and paper company that manufactures and markets wood fiber-based pulp and paper products. The company operates pulp mills and paper mills in Windsor, Quebec; Dryden, Ontario; Kamloops, British Columbia; Ashdown, Arkansas; Hawesville, Kentucky; Plymouth, North Carolina; Marlboro County, South Carolina; and Kingsport, Tennessee. While Domtar operated independently for several decades and was listed on the Toronto and New York stock exchanges, the company was acquired by Paper Excellence Group in November 2021 and has since operated as a subsidiary.
McCormick & Company, Incorporated is an American food company that manufactures, markets, and distributes spices, seasoning mixes, condiments, and other flavoring products to retail outlets, food manufacturers, and foodservice businesses.
Cascades Inc. is a Canadian company that produces, converts, and markets packaging and tissue products composed mainly of recycled fibres. Cascades employs more than 11,700 people in more than 85 operating units in North America. It was founded in 1964.
Sysco Corporation is an American multinational corporation involved in marketing and distributing food products, smallwares, kitchen equipment and tabletop items to restaurants, healthcare and educational facilities, hospitality businesses like hotels and inns, and wholesale to other companies that provide foodservice. The company is headquartered in the Energy Corridor district of Houston, Texas. Sysco is the world's largest broadline food distributor; it has more than 600,000 clients in a wide array of fields. Management consulting is also an integral part of their services. The company operates approximately 330 distribution facilities worldwide; providing service to over 90 countries.
The E. B. Eddy Company was a Canadian pulp and paper company, now a division of Domtar Inc. At the time of the purchase, the company had facilities in Hull, Quebec, Timmins, Ontario, Espanola, Ontario, Chapleau, Ontario, Pembroke, Ontario, Sault Ste. Marie, Ontario, Delta, British Columbia and Port Huron, Michigan.
Staples Business Advantage is the contract division of Staples Inc., providing a membership program for office products, technology products, facilities supplies and breakroom supplies to businesses and institutions. Established in 1993 as Staples Contract and Commercial, the division was rebranded as Staples National Advantage and Staples Business Advantage in 1995. In 2008, Staples acquired Corporate Express, expanding its contract offering to a global market. In 2009, this division was rebranded as Staples Advantage.
Genuine Parts Company (GPC) is an American company engaged in the distribution of automotive replacement parts, industrial replacement parts, office products and electrical/electronic materials. GPC serves numerous customers from more than 2,600 operations around the world, and has approximately 48,000 employees. It owns the NAPA Auto Parts brand.
Essendant Inc., formerly known as United Stationers, is a national wholesale distributor of office supplies, with consolidated net sales of $5.3 billion. Essendant serves 30,000 reseller customers and stocks over 160,000 items, including traditional office products, office furniture, janitorial and break room supplies, industrial supplies, and technology products. Essendant is headquartered in Deerfield, Illinois and also has operations in Dubai, United Arab Emirates (UAE).
Ira David Wallach was an American businessman and philanthropist. He was head of Central National-Gottesman, the largest privately held marketer of paper and pulp products.
PactivEvergeen Inc. is a manufacturer and distributor of food packaging and foodservice products, supplying packers, processors, supermarkets, restaurants, institutions and foodservice outlets across North America.
McLane is an American wholesale supply chain services company that distributes products to convenience stores, discount retailers, wholesale clubs, drug stores, military bases, fast-food restaurants, and casual dining restaurants throughout the United States. It is also a wholesale distributor of distilled beverages in some parts of the country.
The Home Depot Pro, headquartered in Jacksonville, Florida, is a wholesale distributor and direct marketer of maintenance, repair and operations (MRO) products for non-industrial businesses in the United States. The Home Depot Pro distributes products such as HVAC, janitorial supplies, plumbing supplies, and security supplies.
S.E. Rykoff & Co., also known as SERCO, was a broad line national wholesale grocer that serviced the restaurant, hotel and institutional trade from regional warehouses, sale forces and truck fleets located primarily on the west coast of the United States. S.E. Rykoff & Co. eventually became US Foods in 1997 by merging with JP Foodservice. The company traces its roots to a small family grocery store opened by Harry and Ida Rykoff in Los Angeles, California in 1911.
PSS World Medical, Inc. was an American distributor of medical products, equipment, billing services and pharmaceutical related products to non-hospital healthcare providers. In 2008, the company celebrated its 25th year in business and was named to Forbes 400 Best Big Companies list for the second time. In 2013, the company was purchased by the McKesson Corporation and dissolved. The organization also ranked number 965 on the 2008 Fortune 1000 list of largest businesses, up from 980 the prior year.
IGS Energy, also known as Interstate Gas Supply, Inc., is an independent retail natural gas and electric supplier based in Dublin, Ohio, United States. It serves more than 1,000,000 residential, commercial and industrial customers in the states of Ohio, Michigan, Kentucky, New York, Pennsylvania, Indiana, Virginia, Maryland, Texas, California, Illinois and Massachusetts. The company was founded in 1989, and today employs more than 900 people across 18 states.
US Foods Holding Corp. is an American food service distributor founded in 1989. With approximately $24 billion in annual revenue, US Foods was the 10th largest private company in the US up until its IPO. Many of the entities that make up US Foods were founded in the 19th century, including one that sold provisions to travelers heading west during the 1850s gold rush. US Foods offers more than 350,000 national brand products and its own "exclusive brand" items, ranging from fresh meats and produce to prepackaged and frozen foods. The company employs approximately 25,200 people in more than 60 locations nationwide and provides food and related products to more than 250,000 customers, including independent and multi-unit restaurants, healthcare and hospitality entities, government and educational institutions. The company is headquartered in Rosemont, Illinois, and is a publicly traded company trading under the ticker symbol USFD on the New York Stock Exchange.
JanPak was a regional supplier of cleaning, janitorial and packaging products. It operates 17 distribution centers in the Central and Southeastern United States with over 100 delivery trucks. The headquarters of JanPak is in Davidson, North Carolina.
Edgar Wachenheim III is an American investor and CEO and chairman of Greenhaven Associates. He founded that investment company, a former branch of Central National-Gottesman, in 1987 and has worked there since as CEO. Greenhaven Associates had reported assets under management worth $9.3 billion in January 2024. CNBC reported Wachenheim's firm had an average annual return before fees of about 19 percent between 1988 and 2017.
Japan Pulp and Paper Company Limited is a Japanese global pulp and paper trading company, first in Japan and third in the world by the amount of sales after Veritiv Corporation and Central National-Gottesman. Japan Pulp and Paper Company (JPP) distributes paper-related products and also operates real estate business. In 2019, JPP acquired Birmingham-headquartered PREMIER PAPER GROUP (PPG) for ¥5.2B and made PPG into its affiliate with PPG's management team remaining in place and all the 480 employees being kept on following the acquisition.
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