Beachwood, Ohio-based private equity firm MCM Capital Partners has created American Home Products LLC, a Florida-based company created to buy niche manufacturers and distributors of functional and decorative architectural building and renovation products in the residential market.
The launching of American Home Products occurred with the simultaneous closing of the acquisitions of California-based American Made Shutters and its affiliates, Danmer Corp. and The Louver Shop.
Financial terms of the deals were not disclosed.
The companies make and install interior and exterior window treatments and two of them — Danmer of Van Nuys, Calif., and The Louver Shop of Dahlonega, Ga. — make both plastic shutter systems along with wood.
Danmer began producing its Thermalite polymer shutter systems in 1987 from a 104,000-square-foot facility. The Louvre Shop's 70,000-square-foot plant turns out its “dense polymer foam” shutters under the “Louvrewood” brand name.
The acquisitions make American Home Products the country's largest supplier of direct-to-consumer custom interior plantation shutters, exterior shutters and window treatments, according to MCM.
MCM partnered with the senior executive team and former majority owners of Danmer and The Louver Shop, Mark Baraghimian and Jim Tortorelli, respectively, to complete the deal.
All the acquired companies have reported significant growth over the last five years that outpaces general industry growth, said MCM managing director and American Home Products chairman Jay Poffenberger. American Home Products intends to accelerate that through acquisitions and organic growth.
“This is a perfect fit for MCM's investment interests. The end market is large and the competition fragmented, (and) the housing market has favorable long-term underlying demographic drivers,” Poffenberger said.
MCM expects this to be the first investment in MCM Capital Partners III LP, which will hold its first close next week. The firm focuses on acquiring niche manufacturers, value-added distributors and specialty service companies that generate up to $75 million in annual revenue and enterprise values up to $50 million.
Participating alongside MCM in its investment in American Home Products were RCP Advisors, Fifth Third Capital Holdings and Huntington Capital Investment Co. Senior debt and junior debt financing were provided by Huntington National Bank and Huntington Capital.
