New York, June 4, 2018 – Branford Castle, a New York-based private equity firm, today announced the acquisition of Drew Foam Companies, Inc., a leading provider of custom-fabricated expanded polystyrene foam (“EPS”) products serving the packaging, building products and consumer end-markets, primarily in the Southeastern United States. The acquisition is the 5th for the Branford Castle Fund which had its final close in late 2016.
Headquartered in Monticello, Arkansas, the company has three operating facilities, in Monticello, Portland, Tennessee, and Anderson, South Carolina. The company, founded in 1965, offers quick turnaround for customers who often demand just-in-time (“JIT”) delivery for products. Most competing EPS suppliers require long production (high-volume) runs to create manufacturing efficiencies. Drew offers customers flexibility. It processes more than 100 different orders per day, with an estimated 80% of its orders manufactured and shipped on company trucks within 24 hours of receipt and 95% shipped within 48 hours. Drew has more than 700 customers, with no single customer accounting for more than 5% of sales, and its customer retention rate is in excess of 97%.
“Drew’s logistical capabilities and ability to deliver low-volume custom products on a just-in-time basis are unique competitive advantages,” said John S. Castle, President and CEO, of Branford Castle Partners. “We are looking forward to enhancing the company’s packaging-industry growth, extending its customer base, innovating new products and entering new regions.”
The purchase of Drew follows Branford’s acquisition of Vitrek, a leading manufacturer of sophisticated electrical safety test and measurement equipment; Surface Preparation Technologies, the leader in cutting rumble strips for roadway safety; Earthlite Massage Tables, the world’s No. 1 brand of products for the spa, massage and wellness industries; and Continuum Foot Spas, LLC, a leader in the premium pedicure chair market and a highly complementary bolt-on acquisition for Earthlite.
Branford Castle was advised by its legal counsel, Akerman LLP. Terms of the transaction were not disclosed. TCF Capital Funding provided senior debt financing and Siguler Guff & Company, LP provided mezzanine debt financing and made an equity co-investment for the transaction.