PNC Riverarch Capital has sold its portfolio company Custom Molded Products to Tenex Capital Management. PNC Riverarch and Florida Capital Partners acquired Custom Molded Products in November 2013.
Custom Molded Products (CMP) is a manufacturer and distributor of plastic components used in spas, pools, and whirlpool baths. The company offers over 3,500 SKUs and is focused on outward-facing components such as jets and filters. CMP has over 350 active customers, including spa OEMs and pool distributors. The company was founded in 1989 by Bill Drury and Charles Li and is headquartered 40 miles southwest of Atlanta in Newnan, GA (www.c-m-p.com).
During PNC Riverarch’s ownership term, CMP significantly grew revenue and profitability. “We had a very positive experience with PNC as an equity partner,” said Bill Drury, President and CEO of CMP. “They made crucial contributions to the company’s growth and development over the past three years. And personally, I respect and appreciate that PNC took a forward looking approach to our business that positioned CMP for continued success in the future.”
“PNC’s investment in CMP is consistent with our strategy of investing in companies protected by a sustainable competitive advantage and then partnering with management to execute a multifaceted growth strategy,” said Mike Hand, a Managing Director at PNC. “It was a true pleasure to work with the CMP team, and we are very excited for the company as it embarks on its next chapter of growth.” The transaction for PNC Riverarch was led by Mr. Hand along with Rob Dolan, Director; David Poss, Senior Associate; and Zachary Mittelmark, Associate.
PNC Riverarch invests from $10 million to $50 million in privately-held companies headquartered throughout North America. Sectors of interest include outsourced services, specialized manufacturing, and value-added distribution. PNC Riverarch is a division of PNC Capital Finance which in turn is a subsidiary of The PNC Financial Services Group (NYSE: PNC). PNC Riverarch is based in Pittsburgh (www.pncriverarch.com).
Tenex Capital Management, the buyer of CMP, invests up to $100 million in middle-market companies in the industrial, manufacturing, and health and business services sectors. The firm has $452 million of committed capital and is based in New York (www.tenexcm.com).
Charlotte-based investment bank Fidus Partners (www.fiduspartners.com) was the financial advisor to CMP.
© 2017 Private Equity Professional | February 2, 2017
