Wynnchurch Capital has sold a majority interest in Rosboro Holdings to One Equity Partners. Wynnchurch acquired Rosboro in December 2016 and the firm will continue to own a minority stake in the company in partnership with OEP.
Rosboro is a manufacturer of engineered wood products including stock and custom glued laminated timber (known in the industry as “glulam”) and other lumber products used in residential and light commercial construction end markets.
The company, led by CEO Rich Babcock, was founded in 1939 and is headquartered near Eugene in Springfield, Oregon with an additional facility, also near Eugene, in Veneta, Oregon.
“Rosboro is an excellent business making high-quality differentiated engineered wood products at scale,” said Matthew Hughes, a managing director at OEP. “Rosboro is poised to benefit from a number of growth drivers including single-family residential housing starts, net migration to the U.S. West, increasing residential repair and remodel, and glulam’s increasing share against structural wood alternatives and other engineered wood products. We look forward to working with Rich Babcock and his team to capitalize on a growing market opportunity.”
During Wynnchurch’s original investment term, Rosboro sold 95,000 acres of timberland in Western Oregon to timberland-focused investment manager Campbell Global (this sale closed simultaneously with Wynnchurch’s buy of Rosboro in December 2016); and the firm added-on to Rosboro with the 2019 buy of Western Structures, an Oregon-based manufacturer of glulam beams.
“Wynnchurch has been a great partner and provided tremendous support during their ownership,” said Mr. Babcock. “They have helped us drive continuous improvement across our operations and execute on multiple organic and inorganic growth initiatives. We are excited to partner with both OEP and Wynnchurch as we look to execute on our long-term growth initiatives.”
“Rosboro represented an opportunity to invest in a company with a leading market position, differentiated product offering and long-standing customer relationships,” said Brian Crumbaugh, a partner at Wynnchurch. “We are proud of the management team’s accomplishments during our ownership period and are excited to continue our partnership with management during Rosboro’s next phase of growth.”
“Rosboro is exceptionally well-positioned to benefit from continued tailwinds within its core end markets,” added Chris O’Brien, a managing partner at Wynnchurch. “We look forward to partnering with OEP and the Rosboro management team over the coming years.”
Wynnchurch makes investments in middle-market companies that have revenues of $50 million to $1 billion. The firm was founded in 1999 and is headquartered in the Chicago suburb of Rosemont with additional offices in Los Angeles (El Segundo) and New York City.
In January 2020, Wynnchurch closed its fifth private equity fund, Wynnchurch Capital Partners V LP, with $2.28 billion of committed capital. The new fund, which began its marketing in September 2019 with a target of $1.6 billion, was oversubscribed and closed at its hard cap.
OEP is a middle-market private equity firm focused on the industrial, healthcare, and technology sectors in North America and Europe. OEP spun out of JPMorgan in 2015 and has closed more than 300 transactions worldwide since its founding in 2001. The firm has offices in New York, Chicago, Frankfurt and Amsterdam.
Houlihan Lokey was the financial advisor to Rosboro and Wynnchurch on this transaction.
© 2022 Private Equity Professional | January 11, 2022
Wynnchurch Capital has sold a majority interest in Rosboro Holdings to One Equity Partners. Wynnchurch acquired Rosboro in December 2016 and the firm will continue to own a minority stake in the company in partnership with OEP.
