A Pittsburgh-based private equity firm has acquired North Jackson, Ohio-based window maker Vinyl Profiles Inc. and wants to double the value of the company in the next three to five years.
The $6 million buyout is the first investment for TAG Equity Partners LLC, a $20 million fund put together by Advisor Group Inc. The deal closed May 11.
Vinyl Profiles employs 59 and manufactures vinyl windows and doors. It has one plant and 16 extrusion lines.
James Brown, managing director of Advisor Group and TAG's managing principal, said in a May 26 telephone interview that company officials will add new products and add capacity via new extrusion lines at the 50,000-square-foot North Jackson plant.
``I would not be surprised if we would look to increase capacity by 20-50 percent,'' Brown said.
Vinyl Profiles officials expect sales of about $12 million in 2006.
Officials said they will explore every option to add growth and value.
``I'd characterize our appetite as opportunistic,'' Brown said. ``We're looking for well-run businesses. We're growing at about 10-12 percent per year, and we're looking at the possibility of acquisitions.''
It is the nature of private equity funds to try to add value to their holdings for a five- to seven-year window, then sell off. Brown said that's a likely scenario but said it's not inevitable.
``We're not so married to that idea, that that's our only discipline,'' he said. ``If the market is right for a sale, we'll look at it. If not, we'll just continue to hold onto it.
``Exit strategies can include selling to the management team, a strategic buyer or potentially selling it to another financial buyer.''
Randy Vegso, former vice president and general manager of Vinyl Profiles, has been appointed to the company's top post.
Brown is counting on the experience of Vinyl Profiles officials to keep pushing the company forward. Also, they will continue to launch new products.
Just recently, Vinyl Profiles launched a wood laminate product for vinyl windows, giving a wood-look alternative to vinyl window buyers. The laminate can be stained, Brown said.
The company also is exploring other technologies like foaming to add value to its products.
``There's always room in the marketplace for exploring new ideas,'' Brown said.
