By: Catherine Kavanaugh
December 11, 2013
Several portfolio companies of the private investment firm Graham Partners have completed add-on plastics acquisitions.
Infiltrator Systems, Inc., the maker of products for wastewater systems, acquired ICC Technologies LLC, which designs and manufactures similar products for synthetic, aggregate drainage systems and is based in New Jersey.
The acquisition will allow the Connecticut-based Infiltrator to diversify and grow, according to Rob Newbold, managing principal at Graham Partners
“This includes the company's new line of injection molded tanks, which are already changing the industry, and should provide significantly above-market growth for many years to come," Newbold said in a statement.
Infiltrator also recently completed its second dividend recapitalization of the year, returning more than $120 million to its equity investors in 2013. Instead of paying shareholders from company earnings, dividend recaps are funded by raising debt, often by issuing bonds.
In another move, Line-X, which provides customized accessories and protective products to the auto and industrial markets, acquired Canadian Poly Coatings (CPC), which is located in Alberta. This was the year’s second add on for Line-X, which has its corporate headquarters in Huntsville, Ala., and claims to be the leading U.S. provider of spray-on coatings.
CPC was the last North American franchise of its kind and its acquisition marks the final step in a Line-X strategy to streamline distribution by taking control of “master franchisees,” according to Graham Partners.
In November, another Graham portfolio company — Chelsea Building Products — acquired the assets of a small, unnamed Pennsylvania-based cellular PVC building products extruder. The goal is to expand Chelsea's existing cellular PVC line of moldings and its overall capacity. Operations will be consolidated into Chelsea's Oakmont, Pa., facility.
Finally, Troy, Ala.-based HB&G acquired Arbors Direct Inc. (ADI) of Childersburg, Ala. HB&G, which makes synthetic products for porch and deck applications, was interested in ADI for the capability to in-source production of pultruded columns.
The move is expected to make HB&G operations more efficient and add a new pergola line for the outdoor home and pool segments.