River Associates Investments has acquired Presco Polymers in partnership with the company’s management team.
Presco Polymers is a manufacturer of commercial marking products including barricade tape, roll flagging, marking flags, and Krylon marking paint. In addition to its marking products, Presco also compounds and extrudes flexible vinyl film that is sold to other manufacturers who utilize it in the making of medical products, brattice material (mining partitions), laminate flooring, military tents, and awnings.
Presco Polymers, founded in 1943 by Robert “Earl” McMackin as Precision Specialties Company, is today led by CEO Joe Hardt and is headquartered north of Dallas in Sherman, TX (www.presco.com).
“I could not be happier about our association with River Associates,” said Mr. Hardt. “We conducted a national search looking for a partner with a successful track record of building companies like Presco while also sharing some of our core values and beliefs. I am confident that we have found the right partner in River Associates. I look forward to the next chapter of Presco’s success.”
River Associates invests in US and Canadian-based companies with revenues of $20 million to $100 million and EBITDA of $3 million to $12 million. Sectors of interest include niche manufacturing, high margin distribution, industrial services, and business services. The firm is investing out of its seventh fund, River VII LP, which closed in June 2017 with commitments of $285 million. River Associates was founded in 1989 and is based in Chattanooga, TN (www.riverassociatesllc.com).
Patten Pettway, partner, and Blake Lewis, vice president, led this transaction for River Associates. “We are excited to have Presco join the River family,” said Mr. Pettway. “The quality of their products and service, and position in the market are all strong attributes of the company. The management team is eager to pursue growth, and we are thrilled that they have chosen to partner with us for their next chapter.”
Financing for this acquisition was provided by NXT Capital (www.nxtcapital.com) and Northstar Capital (www.northstarcapital.com).
© 2019 Private Equity Professional | February 7, 2019