Arsenal Capital Partners and BayPine have partnered on the acquisition of Poly-Wood, a portfolio company of Mayfair Capital Partners, a division of Oxford Financial.
Poly-Wood is a vertically integrated build-to-order manufacturer of recycled – from post-consumer and post-industrial sources – high-density polyethylene (HDPE) outdoor furniture and related products with more than 25,000 unique product options sold under the POLYWOOD brand. The company’s products include Adirondack, rocking and occasional chairs, benches, swings, and dining sets used in residential back yards, patios, and decks as well as restaurants, cruise ships and hotels.
Poly-Wood, with 1,650 employees and 2 million square feet of manufacturing space, was established in 1990 by CEO Doug Rassi. The company’s headquarters are located northwest of Fort Wayne in Syracuse, Indiana, with an additional manufacturing facility situated in Roxboro, North Carolina.
Oxford first invested in Poly-Wood in October 2015. “It has been a privilege to partner with such a world-class management team to meet the needs of Poly-Wood’s customers and drive a strategy focused on omnichannel growth, product innovation, and manufacturing scale,” said Bo Ramsey, the chief investment officer and co-managing partner at Mayfair and Oxford. “We are thrilled by the results our investment in Poly-Wood was able to produce for our clients.”
“We are thrilled about the opportunity to work alongside Arsenal and BayPine in the next phase of our company’s growth,” said Mr. Rassi. “Arsenal’s deep domain expertise in the polymer processing market and its understanding of our unique manufacturing processes, coupled with BayPine’s technology know-how and sharp focus on further developing our digital capabilities, gives us confidence in our go-forward partnership and unique ability to build a strategically important business.”
“Poly-Wood’s longstanding track record of growth and industry-leading position are a testament to the differentiated business model and brand the team has built over the past three decades,” said George Abd, an operating partner at Arsenal. “Given its vertical integration and eye toward innovation, the company’s ability to serve its retail partners and consumers is unmatched in the market. We are excited to work with Doug and his leadership team to continue building on the business’ momentum.”
“We see meaningful opportunity ahead for Poly-Wood and significant whitespace in the HDPE market,” said Matthew Teller, a principal of Arsenal. “We look forward to investing behind the company to achieve both key organic and inorganic initiatives and to further drive long-term strategic value.”
Partnering with Arsenal on this transaction is Boston-based BayPine, an investor in companies that are active in the healthcare, consumer, specialty industrials, and business services sectors. BayPine specializes in investing in companies where opportunities are present for growth through the application of digital technology in infrastructure, analytics, marketing, and automation.
“Poly-Wood has distinguished itself through its pioneering brand and sustainable manufacturing processes, unwavering commitment to operational excellence, and focus on fostering a highly collaborative and collegial culture,” said Steve Ko, a founding partner of BayPine. “We see a significant opportunity to further build lasting value at Poly-Wood by leveraging our differentiated digital and technology expertise in partnership with management.”
New York-headquartered Arsenal invests in middle-market specialty industrial and healthcare companies that have $100 million to $500 million of enterprise value. Since its founding in 2000, Arsenal has raised total capital of $10 billion, closed more than 290 platform and add-on acquisitions, and exited more than 35 portfolio companies.
Arsenal’s buy of Poly-Wood, follows its January 2024 acquisition of Polycorp, an Ontario-headquartered maker of engineered polymer products, including rubber- and polyurethane- based elastomers, which are used to reduce corrosion, abrasion, vibration, and noise in applications in the mining, rail, infrastructure and industrial sectors.
Mayfair Capital Partners makes control and non-control equity investments of $75 million to $150 million in North American-based businesses that are active in the consumer, technology, and industrial sectors and have EBITDA at or near break-even to $30 million. Mayfair was formed by Oxford in July 2021 as an extension of its Mayfair direct investment strategy which was formed in 2003. Mayfair and Oxford are headquartered north of Indianapolis in Carmel, Indiana.
Piper Sandler & Co. and Moelis & Company were the financial advisors to Poly-Wood, and Baird was the financial advisor to Arsenal and BayPine.
© 2024 Private Equity Professional | March 28, 2024
