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Archives for June 26, 2025

Sky Island Carves Scranton Products from AZEK

June 26, 2025 by John McNulty

Sky Island Capital has acquired Scranton Products, a manufacturer of high-density polyethylene (HDPE) bathroom partitions and lockers, from The AZEK Company.

Scranton’s products are used in commercial, institutional, and recreational applications for schools, offices, fitness centers, hospitals, and transportation hubs. Many of the company’s customers include architects, contractors, and facilities managers across the education, government, healthcare, and hospitality sectors.

Source: Scranton Products

Scranton’s more than 200 SKUs of products are sold under company-owned brand names including Hiny Hiders, Tufftec Lockers, Resistall, Duralife Lockers, and Eclipse Partitions through a combination of a direct sales staff and a diversified dealer and representative network covering the U.S. and Canada.

Today, Scranton Products is led by CEO Rob Donlon and is headquartered in Scranton, Pennsylvania, where it operates a 300,000-square-foot manufacturing facility.

Scranton Products originated in 1978 as Santana Products, which introduced the first HDPE toilet partition as a durable alternative to metal and wood in high-moisture, high-traffic, and vandalism-prone environments. In 2003, family-owned Comtec Industries acquired Santana’s competitor Capitol Partitions, followed by its acquisition of Santana Products in April 2006. The combined operations were later unified under the Scranton Products brand.

The AZEK Company (NYSE: AZEK) is a designer and manufacturer of outdoor living products including TimberTech composite decking and railing, AZEK and Versatex polymer trim and mouldings, StruXure pergolas, and other outdoor and exterior building materials. AZEK is headquartered in Chicago.

AZEK was founded as CPG International by AEA Investors in 2005 as a consolidation platform for building products companies, including Vycom Plastics, Santana Products, and AZEK Building Products. In 2013, AEA exited the platform through a sale to Ares Management and the Ontario Teachers’ Pension Plan. The company rebranded as The AZEK Company in 2018 and completed a $765 million initial public offering in 2020.

In May 2025, AZEK estimated that Scranton Products would have full-year sales of $68 million to $71 million, and an Adjusted EBITDA in the range of $11 million to $13 million, for an Adjusted EBITDA margin of 16% to 18%.

“We are thrilled to partner with the Sky Island team,” said Mr. Donlon. “Their manufacturing background and long term investment philosophy align with our culture and strategic vision. We’re excited to be a platform investment and look forward to pursuing our shared strategic goals.”

Source: Scranton Products

“Today marks an exciting new chapter for the Scranton Products team,” said Jonathan Skelly, the president of AZEK’s residential and commercial divisions. “We believe Sky Island brings the vision and focus needed to accelerate Scranton Products’ growth and success in the commercial space. With a legacy dating back to 1978, Scranton Products has long been a market leader in high-quality HDPE plastic solutions. We are deeply grateful for their contributions to our business and confident they will continue to lead the industry in durable bathroom partitions and lockers.”

“Scranton Products and its brands are synonymous with plastic partitions and lockers and have helped define the category through decades of innovation and thought leadership,” said Michael Marsh, a principal at Sky Island. “We believe the leadership team has an exceptional track record growing the Company’s install base and product offering, all while continuing to prioritize customer needs. We are excited to partner with the team to continue this legacy as the company takes on this new chapter.”

Sky Island Capital invests from $10 million to $50 million of equity in North America-based manufacturing companies that have revenue of $10 million to $200 million and EBITDA of $5 million to $15 million. Sectors of interest include aerospace and defense; auto and transportation; building products; consumer products; food and beverage; industrial products; metals; packaging; and specialty chemicals. To date, Sky Island has invested in 18 manufacturing businesses since its founding in 2018.

This acquisition of Scranton is Sky Island’s third platform investment from its second fund, Sky Island Capital II LP, which closed in January 2025 with $300 million of capital. The two earlier buys were Pacific Paper Tube, a California-based manufacturer of paper tubes and cores used in the industrial, construction, and packaging sectors, in July 2024; and Farmdale Creamery, a California-based maker of yogurt, buttermilk, cheese, and multiple sour cream varieties, serving retail and foodservice markets across the U.S. and Canada, in August 2024.

William Blair & Company was the financial advisor to The AZEK Company on this transaction.

© 2025 Private Equity Professional | June 26, 2025

Filed Under: New Platform, Transactions

HCPI Launches Artisan Bakery

June 26, 2025 by John McNulty

HC Private Investments (HCPI) has formed Artisan Bakery as a new food platform and has acquired its first two businesses with the buys of Snackwerks and Specialty Bakers.

Snackwerks is a contract manufacturer specializing in cookies, granola, snack bars, and other shelf-stable baked snacks. The company’s capabilities include formulation support, pilot production, and large-scale commercial manufacturing. Snackwerks was founded in 2009 by Jeff Grogg and is headquartered in Battle Creek, Michigan.

Specialty Bakers is a maker of in-store bakery products including éclairs, angel food cakes, whoopie pies, and crème-filled cakes that are sold directly to retail bakeries and through foodservice distribution. Specialty Bakers, led by CEO Jack Eckerd, is headquartered near Harrisburg in Marysville, Pennsylvania.

Source: Getty Images

Kirk Trofholz will serve as the executive chairman of Artisan Bakery. Mr. Trofholz is the former CEO of Nielsen Massey, an Illinois-based producer and seller of natural vanilla and other flavor extracts; and the former president of the US Bakery Products division of Dawn Food Products, a Michigan-based maker of mixes, bases, icings, glazes, fillings, frozen dough, and fully baked food products.

In addition to Mr. Trofholz and Mr. Grogg, other members of the board of directors of Artisan Bakery include industry veterans Liz Barnett (Treehouse Foods) and Purav Patel (Bagel Dots and CraftMark Bakery).

“Our vision is to preserve the craft and quality of each bakery while providing the operational scale, R&D support, and strategic leadership needed to thrive in a fast-evolving food landscape,” said Mr. Trofholz. “As grocery retailers continue to prioritize prepared foods to attract and increase foot traffic, we believe we are well positioned to offer in-store bakery customers a differentiated model to create leading indulgences with the highest quality ingredients and flexible packaging options serving both family and individual formats.”

“We are excited to partner with experienced operators and advisors to build a differentiated bakery business,” said John Kelly and Matt Moran, managing partners at HCPI, in a released statement. “Together, we will help our portfolio companies scale, innovate, and deliver superior products that meet today’s evolving consumer demands.”

HC Private Investments, headquartered in Chicago, makes equity investments between $15 million and $45 million in lower-middle market manufacturing companies within the consumer and industrial markets that have revenues from $15 million to $75 million and EBITDA of at least $4 million. Sectors of specific interest include food and ingredients, pet-related products, household goods, automation and process control, aerospace and defense, and medical devices. HCPI was founded in 2017.

Brown Gibbons Lang’s food and beverage investment banking team, led by Managing Director Daniel Gomez, was the financial advisor to Specialty Bakers.

Signature Bank of Chicago and Ironwood Capital provided debt financing for the formation of Artisan Bakery and the acquisition of Snackwerks and Specialty Bakers.

© 2025 Private Equity Professional | June 26, 2025

Filed Under: New Platform, Transactions

Arcline Has a Micro Blast with Latest Add-On

June 26, 2025 by John McNulty

Medical Manufacturing Technologies (MMT), a portfolio company of Arcline Investment Management, has acquired Comco, a specialist in micro-precision sandblasting.

Charlotte-headquartered MMT designs, manufactures, and services machinery used in the production of interventional medical devices, components, and consumables, including guidewires, catheters, and microcoils. Company-owned brands include CATHTIP, Engineering by Design, Glebar, SYNEO, and Tridex. Arcline first invested in MMT in 2019.

Comco specializes in manual and automated micro-precision and high-velocity sandblasting systems that blend clean, dry air with abrasive particles as small as 17.5 microns, allowing for precise abrasive processing—deburring, texturing, cleaning, and modifying part surfaces—in the medical device, aerospace, microelectronics, and precision machining industries.

Comco was founded in 1968 and pioneered micro-scale abrasive blasting. Over the past 57 years, the company has refined its surface treatment systems for applications ranging from medical and dental manufacturing to silicon wafer cutting and fossil and gem preparation. Comco is headquartered near Los Angeles in Burbank, California.

Source: Comco

“We are thrilled to expand our range of comprehensive manufacturing solutions with the acquisition of Comco,” said Robbie Atkinson, the CEO of MMT. “This new partnership will strengthen our position as a trusted end-to-end provider of medical and specialized industrial manufacturing services and solutions worldwide. Comco’s commitment to quality products, exceptional customer support, and outstanding technical assistance aligns perfectly with MMT’s dedication to innovation and customer care, ultimately helping customers achieve success.”

Source: Comco

“We’re thrilled to announce our collaboration with MMT, a trusted leader in automated, process-driven manufacturing,” said Colin Weightman, the president of Comco. “By combining our unique strengths and expertise, we are committed to delivering innovative solutions that will enhance the customer experience and propel the manufacturing industry towards new heights of success.” Post-closing, Mr. Weightman will join MMT as Technical Sales Director focusing on the growth of abrasive technologies.

Arcline Investment Management, based in New York City, focuses on control investments in companies with recurring revenue models across sectors such as defense and aerospace, industrial and medical technology, life sciences, and specialty materials. The firm targets companies with EBITDA ranging from $10 million to $100 million and enterprise values up to $1 billion. In March 2023, Arcline closed its third fund with $4.5 billion in capital commitments, following its $2.75 billion second fund closure in January 2021.

© 2025 Private Equity Professional | June 26, 2025

Filed Under: Add-on, Transactions

Avista Healthcare Closes GCM Continuation Fund

June 26, 2025 by John McNulty

Avista Healthcare Partners has closed Avista Healthcare Partners CV II LP (ACV II), a single-asset continuation fund for GCM, a maker of precision medical components.

The new fund provides existing investors with an exit opportunity while enabling Avista to continue supporting GCM’s growth with additional capital. Investors in the ACV II include funds managed by Goldman Sachs Alternatives and BlackRock Secondaries. In addition to capital for the acquisition of GCM, the continuation fund includes additional capital commitments to support future acquisitions and further scale the GCM business.

GCM is a manufacturer of low-to-medium volume, precision components and system assemblies used in medtech, aerospace, and industrial applications. The company’s medtech products are used in robotic-assisted surgery, radiotherapy, diagnostic technology, and other medical equipment.

“We are excited about the future prospects of GCM and the opportunity to partner with Avista in a transaction that provides existing investors a liquidity option while providing GCM additional duration and capital to take advantage of the compelling opportunity in the robotic surgical and other high-growth medical technology end markets,” said Brian Musto, a managing director at Goldman Sachs Alternatives.

Avista acquired GCM in 2019 from May River Capital which originally acquired GCM (then Hi-Tech Manufacturing) in July 2012 from Longview Capital Partners. In May 2014, Hi-Tech acquired GCM Medical and OEM, Inc. and rebranded the merged company under the name GCM.

Since acquiring GCM, Avista has worked with management to double the company’s revenue, investing in technology, facilities, and talent. A recent add-on acquisition by GCM was the December 2024 buy of Precision Swiss Products, a North Carolina-based provider of micro feature machining services that create very small, precise, intricate details—features measured in fractions of a millimeter or even microns—on parts for customers in the medical devices, aerospace, and semiconductor capital equipment sectors.

Source: GCM

Today, GCM, led by CEO Seamus Meagher, has a total of 350,000 square feet of manufacturing space in four facilities near San Francisco in Union City, California (headquarters); and in Illinois, North Carolina, and China.

“We are thrilled to continue our partnership with Avista,” said Mr. Meagher. “The new capital and continued expertise of the Avista team will help us more quickly enhance our product offerings, expand our manufacturing capabilities, and achieve our next stage of growth.”

“We are pleased to provide our existing investors with the option for liquidity or continuing to participate in the value creation strategy we are successfully executing at GCM,” said Rob Girardi, a partner at Avista. “We look forward to supporting GCM’s next phase of growth and expanding the company’s leading market position for the benefit of customers and all stakeholders.”

Avista Healthcare Partners makes control or influential minority investments in growth-oriented healthcare businesses, with specific interests in outsourced pharma and medtech services, consumer healthcare, medical devices, specialty and generic pharmaceuticals, distribution and diagnostics, and healthcare technology. The firm was founded in 2005 and is headquartered in New York City.

Piper Sandler was the financial advisor to Avista and Ropes & Gray provided legal services.

© 2025 Private Equity Professional | June 26, 2025

Filed Under: New Funds, News

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