Saw Mill Capital has completed the sale of its portfolio company Pexco, a manufacturer of extruded plastic products, to Odyssey Investment Partners. The entire Pexco management team, including Chief Executive Officer Neil Shillingford, Chief Financial Officer Dennis Fink, and Chief Operating Officer Sam Patel, have invested in the transaction alongside Odyssey and will continue to lead the company.
“Neil Shillingford and his team did a terrific job expanding the Pexco organization and their capabilities, deploying new processes, and expanding into new products, markets and geographies, which resulted in improving the company’s opportunities for continued growth on a global scale,” said Tim Nelson, Principal of Saw Mill. “Under the ownership of Saw Mill, Pexco increased revenues and EBITDA over 40% and 75%, respectively.”
Pexco is a leading multi-site custom extruder of thermoplastic profile, tube and sheet. The company serves the life sciences, industrial and commercial end markets. Pexco operates 170 extruders, 50 dedicated co-extruders and six sheet lines across approximately 920,000 square feet of production space across 10 facilities in the U.S. and Mexico. Additionally, Pexco provides a variety of complementary, value-added services such as design, prototyping, die building, sub assembly and supply chain management. The company is based in Alpharetta, GA (www.pexco.com).
“The Saw Mill team was an important corporate development partner to us, introducing processes and approaches that helped us develop and execute on our strategies, and providing access to the resources we required to implement our growth strategy,” said Neil Shillingford, CEO of Pexco. “I especially appreciated their systematic and practical approaches to strategy deployment, lean business practices, sales force excellence, and acquisitions. Their counsel in these areas accelerated the expansion of our management team and internal processes in ways that fundamentally strengthened our business and improved our future prospects.”
Saw Mill Capital invests in manufacturing and service companies with enterprise values of $25 to $200 million. Saw Mill makes platform investments in companies with at $40 million to $150 million of revenues and at least $5 million of pro forma EBITDA. It will consider smaller transactions as add-ons for portfolio companies. The firm is located in Briarcliff Manor, NY (www.sawmillcapital.com).
Odyssey Investment Partners is a middle-market private equity fund with more than $2 billion under management. Odyssey makes controlled investments primarily in established middle-market companies in a variety of industries, including industrial manufacturing, business, financial and healthcare services, aerospace products, and localized and route-based service businesses. The firm is headquartered in New York, NY (www.odysseyinvestment.com).
“Pexco is an extremely well positioned company within the custom segment of the extrusion sector and operates in attractive end markets. We believe Pexco is an excellent platform for expansion through organic growth and strategic add-on acquisitions. We are excited to partner with Pexco’s outstanding management team, and we expect to build Pexco into a global leader in the niche extrusion industry,” said Craig Staub, Managing Principal of Odyssey.
William Blair & Company acted as Pexco’s advisor in this transaction.
PEPD 8-16-12
