Wynnchurch Capital has acquired FCA Packaging, a maker of industrial protective packaging, from Delos Capital and Brookside Capital Partners.
FCA Packaging is a manufacturer of customized and heavy-duty industrial packaging products including skids, crates, pallets, and collapsible boxes made from numerous material types including wood, steel, corrugated and hybrid packaging.
“We are committed to providing our customers with best-in-class packaging solutions and unmatched service and are excited to partner with Wynnchurch as we continue into the next phase of growth,” said Mr. Wilsted. “Wynnchurch understands FCA’s business model and its role as a critical partner to our customers’ supply chains. Together, we can continue to grow our platform as the leading provider in protective packaging solutions.”
According to Wynnchurch, FCA is one of the largest providers of custom industrial packaging solutions in the United States.
“We are very pleased to partner with FCA, which has a long, established track record of delivering industry-leading quality, uniquely designed solutions, and just-in-time service,” said Frank Hayes, a managing partner at Wynnchurch. “Its customer-centric focus and highly engineered industrial applications are a strong fit with our investment philosophy of acquiring well-managed industry leaders.”
“The management team at FCA has done an incredible job building the company into one of the largest providers of custom industrial packaging solutions,” said Neel Mayenkar, a partner at Wynnchurch. “We are excited about the opportunity to partner with David and the team as we continue to expand the company’s footprint and product portfolio to better service its growing customer base.”
Delos and Brookside acquired FCA in December 2014 from a group of private investors. Brookside provided second lien debt and made an equity co-investment. Over the investment term, Delos and Brookside made several add-on acquisitions including the January 2021 buy of Timber Creek Resource (DBA Wisconsin Box) with manufacturing locations and hardwood mills in Wisconsin, New York and Tennessee; and the October 2018 buy of Crate Tech, a Washington-based crating and packaging company that specializes in aerospace products and household goods.
“Brookside was an important financing partner for us, and their support helped fuel the growth of FCA,” said Willard Debruyn, a partner of Delos Capital.
Delos Capital invests in lower middle market companies that have EBITDA of $5 million to $30 million and are active in the building materials, business and industrial services, chemicals, packaging, and consumer sectors. The firm was founded in 2013 and is headquartered in New York City.
“We were delighted to have been selected by Delos Capital and have the opportunity to work with and support them and the FCA management team in achieving significant organic and acquisitive growth over the last eight years,” said Neil Shah, a partner of Brookside. “This investment was an attractive outcome for our limited partners, and we wish the FCA team continued success.“
Brookside invests from $5 million to $30 million in unitranche debt, subordinated debt, structured junior capital and minority equity in companies with more than $15 million in revenue and more than $4 million in EBITDA. Sectors of interest include business services, consumer, distribution, healthcare services, manufacturing, and transportation and logistics. Brookside was founded in 2001 and is headquartered in Stamford, Connecticut, with additional offices in Boston, Los Angeles and Naples.
Wynnchurch
makes investments in middle-market companies that have revenues of $50 million to $1 billion. In January 2020, Wynnchurch closed its fifth private equity fund, Wynnchurch Capital Partners V LP, with $2.3 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. Wynnchurch 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.
Recent platform investments by Wynnchurch include the December 2021 buys of Mattress Warehouse, an independent mattress retailer with over 300 locations; and the thermal coating business assets of Appvion. Earlier buys in 2021 include Owen, a provider of new and used infrastructure equipment to municipal, utility, and commercial users (November 2021); Premier Franchise Management, the largest U.S. residential pool-build and pool-service franchisor (August 2021); and Trimlite, a manufacturer and distributor of residential doors and related door products (July 2021).
Lincoln International was the sell-side financial advisor to FCA on this transaction.
© 2022 Private Equity Professional | August 16, 2022
