High Road Capital Partners has acquired Cali Bamboo, a direct-to-consumer retailer of bamboo flooring. This is High Road’s fifth platform acquisition for its $320 million second fund which closed in December 2013.
Cali Bamboo co-founders Jeff Goldberg, CEO, and Tanner Haigwood, Vice President of Business Development, invested in the transaction alongside High Road and will continue to lead the company post-closing.
Cali Bamboo’s products include bamboo flooring, composite decking, bamboo plywood, eucalyptus flooring, bamboo fencing, and cork tiles. In addition to its direct-to-consumer sales, the company also sells to contractors and architects, flooring dealers, and retailers. Cali Bamboo was founded in 2004 and is headquartered in San Diego (www.calibamboo.com).
Bamboo is among the fasting-growing plants on Earth, making it an environmentally sustainable alternative to conventional hardwoods. “Green building products are a rapidly growing segment of the new construction and remodeling markets. Consumers and businesses are seeing the aesthetic, economic and environmental benefits of bamboo and other renewable materials over traditional hardwoods,” said Ben Schnakenberg, a High Road Partner.
High Road invests in manufacturing, service, or value-added distribution businesses with revenues of $10 million to $100 million and EBITDAs of $3 million to $10 million. High Road has now completed 37 transactions – 14 platform investments, 19 add-on acquisitions and four exits – since its founding in 2007. High Road is based in New York (www.highroadcap.com).
To grow Cali Bamboo, High Road intends to develop new products and expand distribution channels. “We look forward to working with Cali Bamboo’s entrepreneurial team to leverage the company’s brand across new product categories and to more fully develop multiple distribution channels,” said Mr. Schnakenberg.
“Since founding the company in 2004 as a direct-to-consumer, online retailer of bamboo building products, we have served more than 250,000 customers,” said Mr. Goldberg. “We are building a presence in other distribution channels, including a rollout with a premier home improvement retailer. As our new partner, High Road will provide guidance and resources to support the rapid growth of our business.”
Mr. Schnakenberg led the transaction for High Road and was assisted by Jerry Anderson, Operating Partner; Scott Rubino, Vice President; and James Karle, Associate.
Monroe Capital (www.monroecap.com) was the sole lead arranger and administrative agent on a unitranche credit facility to support this acquisition.
Cali Bamboo was represented in the transaction by San Diego-based investment bank Shoreline Partners (www.shoreline.com).
© 2015 PEPD • Private Equity’s Leading News Magazine • 7-16-15
