Alleghany Forms Piedmont, Makes First Acquisition

Alleghany Capital has formed Piedmont Manufacturing Group to acquire Wilbert Plastic Services (WPS).

WPS is a provider of injection molded and thermoformed parts and multi-component assemblies used by original equipment manufacturers in the industrial, commercial, transportation, recreational, and medical industries. WPS’ additional capabilities include design and engineering, painting, robotic trimming, logistics, and inventory management.

WPS, headquartered west of Charlotte in Belmont, North Carolina, operates four manufacturing facilities with more than 730,000 square feet in Bellevue, Ohio (196,000 sq. ft.); Harrisburg, North Carolina (120,000 sq. ft.); Lebanon, Kentucky (176,000 sq. ft.) and Easley, South Carolina (244,000 sq. ft.). Each day, WPS – led by CEO Greg Botner – manufactures and delivers more than 400,000 parts and assemblies throughout North America and the world.

WPS is a supplier to Wilbert Funeral Services (WFS), a portfolio company of Allegany since 2017 and a Kansas-based provider of products and services used in the funeral and cemetery industries.

“Although WPS has a shared history with and remains a supplier to WFS, an Alleghany portfolio company, the two businesses are distinct, with very different capabilities and customers,” said Udi Toledano, the chairman of Alleghany Capital. “As a result, there are no plans to combine WPS and WFS, which is reflected in the formation of Piedmont Manufacturing as our fifth platform company within our industrial segment.”

“We are delighted to partner with Alleghany Capital to build Piedmont Manufacturing into the leading industry platform for value-added products, services, and technology,” said Mr. Botner. “We are committed to delivering outstanding results to our customers, and this partnership will enhance our ability to further expand our customer base and provide our dedicated employees with even greater opportunities for growth and advancement.”

“We are pleased to announce the formation of Piedmont Manufacturing as our eighth platform company and are excited about its acquisition of WPS,” said David Van Geyzel, the chief executive officer of Alleghany Capital. “We look forward to supporting Greg and his dedicated team of over 600 employees as they continue to provide their customers with essential components and services for products that consumers use every day.”

New York City-headquartered Alleghany Capital makes majority investments in North American-based companies that have from $20 million to $60 million of EBITDA. Sectors of interest include consumer products, business services, and manufacturing. The firm is part of Alleghany Corporation (NYSE: Y) an investment holding company founded in 1929 by railroad barons (and brothers) Oris and Mantis Van Sweringen as a holding company for their business interests.

“We are pleased to welcome WPS into the Alleghany Capital family and are eager to provide the company and its employees with the benefits of our unique model,” said Rob Hulick, a principal at Alleghany Capital. “Leveraging Alleghany Capital’s long-term investment horizon, quasi-autonomous operating model, and access to its resources, we believe WPS should be well-positioned to expand on its current market position. As with our other portfolio companies, Alleghany Capital expects to provide the company with the resources and follow-on capital to invest in organic initiatives and add-on acquisitions.”

CC Capital Advisors, a Kansas-headquartered investment bank, was the financial advisor to WPS.

© 2021 Private Equity Professional | May 14, 2021

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