Private equity firm Riverside Co. has renewed its interest in the plastics market by buying PVC window extruder Sunrise Windows Ltd. for an undisclosed price.
Cleveland-based Riverside had sold off three plastics-related businesses since 2008, but found a worthy target in Sunrise, which is based in Temperance, Mich.
Sunrise is run by a very good and deep management team, Riverside partner Tim Gosline said in a Dec. 21 phone interview. They managed to grow in the midst of a really down construction market.
Sunrise which employs about 200 and operates four production lines at a 94,000-square-foot plant has averaged growth of 8 percent for the last five years, even though PVC window sales were off by at least 50 percent as the U.S. housing bubble popped, according to Gosline. Riverside declined to give specific sales numbers for Sunrise.
Sunrise bucked the trend by focusing on the replacement window market and by expanding its geographic reach from the Midwest to other parts of the country, including the Southeast and areas west of the Rocky Mountains.
Riverside is buying Sunrise from majority owner FDG Associates LLC of New York and from founder and CEO Gary Delman, who held a minority stake in the firm that he helped launch in 1994. Delman and his management team are expected to remain with the firm.
We're excited about growth prospects for the construction market, especially when demand rebounds, Gosline said. At some point, we may need to look at adding another line in Temperance and we might need an add-on acquisition west of the Rockies.
For Riverside, the deal marks the firm's 300th transaction since it opened its doors in 1988. Its current portfolio includes 72 companies that employ a total of almost 14,000. Riverside itself employs 195 and has $3.4 billion in assets under management.