Gridiron Capital has acquired Vertical Supply Group, a provider of fall protection equipment and arborist tools, from Platte River Equity which will maintain a minority interest in the company in partnership with Gridiron.
Vertical Supply Group (VSG) is a manufacturer, distributor, and e-commerce seller of arborist tools, rescue and fall protection equipment including ropes, technical equipment, tools, and personal protective equipment. VSG is led by CEO Tripp Wyckoff and is headquartered in Greensboro, North Carolina.
VSG’s products are used by arborists, climbers, emergency personnel, technical rescue, and other work-at-height professionals. Company-owned brands include Notch Equipment, Sterling Rope, Atlantic Braids, and Rope Logic; and VSG is also the exclusive Americas importer and distributor of Silky Saws, a Japan-based manufacturer of arborist cutting tools.
“We have known the Gridiron team for a number of years and are excited to solidify a partnership with them given their track record and PPE sector expertise,” said Mr. Wyckoff. “We share a passion for our brands with the customers we serve, and we plan to leverage Gridiron’s extensive experience investing in branded consumer businesses and executing on attractive acquisition opportunities to continue our strong growth trajectory. We could not be more excited about this partnership and the alignment of our cultures.”
VSG was formed by Platte River in 2019 as a platform company to consolidate its investment in Sherrill, a Greensboro, North Carolina-based distributor of arborist tools and equipment, which it acquired from Generation Equity Capital in December 2018. Platte River later completed a series of add-on acquisitions for VSG including Bishop Company, a California-based arborist distributor; Sterling Rope Company, a Maine-based life safety rope manufacturer; Fred Marvin Associates, an Ohio-based manufacturer and distributor of tree tools including poles and pruners; and Rescue Direct, an Illinois-based e-commerce retailer and supplier of technical rescue gear and equipment.
“VSG has an unmatched legacy as an industry pioneer, driven primarily by an unwavering focus on safety, innovation, and customer satisfaction dating back to its founding by the Sherrill family,” said Tom Burger, a co-founder and managing partner at Gridiron. “We are looking forward to partnering with Tripp and the VSG management team to align Gridiron’s capabilities and industry experience with VSG’s exceptional talent and knowledge to position the business to capitalize on the significant growth opportunities ahead.”
Gridiron invests in manufacturing, service, and specialty consumer companies with enterprise values from $75 million to $600 million and EBITDA from $10 million to $60 million. Sectors of interest include branded consumer, business-to-business and business-to-consumer services, and niche industrial. In December 2020, New Canaan, Connecticut-based Gridiron held a hard-cap and oversubscribed closing of its largest fund, Gridiron Capital Fund IV LP, in December 2020 with $1.35 billion of capital. The firm’s investment in VSG is the ninth platform investment made by Fund IV.
“We have long admired VSG for its leadership in the work-at-height safety and PPE sector and its proven track record of organic and acquisition-led growth,” said John Warner, a managing director at Gridiron. “This is a priority investment sector for Gridiron and one in which we have significant expertise and resources that we can leverage to help our partners reach new heights. There is a strong cultural fit and a shared spirit of entrepreneurship between our two teams, and we are excited to work alongside the entire VSG team to support their growth and position the Company for long-term success and industry leadership.”
Denver-based Platte River makes equity investments of $25 million to $100 million in lower middle-market companies with annual revenues of $20 million to $250 million and EBITDA from $7 million to $30 million. Sectors of interest include aerospace and transportation; energy products and services; industrial products and services; and agriculture and chemicals.
“It has been a great partnership with Tripp and the entire VSG team,” said Peter Calamari, a managing director at Platte River. “We believe it is the right time to bring in a new partner to help take the company to the next level but are excited to be retaining an ongoing stake in the business.”
VSG was advised by BlackArch Partners and Canaccord Genuity, and Gridiron Capital was advised by EC Mergers & Acquisitions.
© 2022 Private Equity Professional | April 12, 2022
