Charger Investment Partners has acquired CMI Limited, a manufacturer of products used in shoreline preservation and marine access, from Heartwood Partners.
CMI’s products include vinyl, composite and aluminum sheet piling, mineral-plastic composite marine decking, and aluminum docks, bridges and gangways. Many of the company’s products – which are sold to distributors, contractors, owners, engineers, and municipalities – are used for seawalls, retaining structures, flood protection, chemical containment, soil stabilization, and marinas.
CMI was founded in 1988 and is headquartered north of Atlanta in Woodstock, Georgia, with additional manufacturing facilities in Florida, Washington, and Illinois.
The shoreline preservation and marine access sector is increasingly moving away from legacy wood, steel, and concrete materials to more durable and sustainable polymer and aluminum materials. According to the company, CMI founded the vinyl sheet piling industry, and its ShoreGuard brand has one of the most extensive product lines in the sector.
With the closing of the transaction, Doug Zacharias, CMI’s president and chief sales and marketing officer, becomes the CEO of CMI. Mr. Zacharias takes the helm of CMI from Duane Bryant, who had served as CMI’s CEO since 2001. Mr. Bryant will continue with CMI as a member of its board of directors.
Heartwood, through its second fund – Capital Partners Private Equity Income Fund II LP – acquired CMI in September 2017 from Crane Group, a family-owned holding company headquartered in Columbus, Ohio.
During Heartwood’s just over five-year ownership term, the firm worked with CMI to expand the company’s sales channels, product lines, and brands. Additionally, the company completed two add-on acquisitions, with the buys of Engineered Plastic Systems, an Elgin, Illinois-based manufacturer of high-density polyethylene (HDPE) boards used primarily in decking, railing, and recreational facility products (March 2020); and Mantle Industries, a Blaine, Washington-based producer of aluminum ramps, gangways, catwalks and bridges used in marine applications (October 2018).
“The strength and stability of Heartwood’s unique lower-debt structure and supportive investment approach allowed management at CMI to grow into a leading player in the industry,” said Mr. Zacharias.
“We are very proud of what has been accomplished at CMI over the last five years,” said James Sidwa, a partner at Heartwood. “It has been a pleasure partnering with the management team and assisting with the development of the company. We look forward to watching the business continue its growth trajectory under Doug’s leadership as CEO and are pleased to see Duane Bryant continue on CMI’s board of directors.”
“Charger is the perfect partner to continue driving growth and innovation at CMI,” said Mr. Zacharias. “CMI has a long history of innovation, quality and customer service, having pioneered the recycled vinyl sheet piling industry to provide our customers with protection and access solutions. Our customer-centric approach provides engineered solutions at a lower total cost of ownership using alternative and sustainable materials. We are extremely excited to partner with Charger and leverage their expertise, operational insights and partnership philosophy to accelerate growth and continue our track record of success.”
“We are thrilled to partner with Doug and the entire CMI team,” said Aaron Perlmutter, co-founder and partner at Charger. “CMI has an impressive history of leadership within its industry, and we admire their focus on sustainability of marine environments. We share management’s vision of the future and look forward to supporting the next phase of the company’s growth.”
Charger Investment Partners makes control or significant minority investments of $25 million to $75 million in North America-based companies with revenues from $50 million to $350 million and up to $35 million in EBITDA. Sectors of interest include industrials, consumer products and services, and business services. Charger is headquartered near Los Angeles in El Segundo, California.
Heartwood invests in United States-based companies that have revenues from $30 million to $400 million and EBITDA between $5 million to $30 million. Sectors of interest include agriculture, auto and truck aftermarket, consumer products, distribution, food, industrial services niche manufacturing, packaging, and specialty chemicals and materials. The Norwalk, Connecticut-based firm is investing through its fourth fund – Heartwood Partners Fund IV LP – and was originally founded in 1982 as Capital Partners and changed its name to Heartwood Partners in 2020.
Stifel was the financial advisor to CMI on this transaction.
© 2023 Private Equity Professional | January 20, 2023
