Tangent Technologies, a portfolio company of The Sterling Group, has closed two add-on acquisitions with the buys of Home & Leisure, and Vinyl Tech.
Home & Leisure is an extruder, fabricator, and assembler of plastic lumber furniture sold to the mass market casual furniture industry. The company is based in Brantford, ON. Vinyl Tech provides fulfillment services to Tangent through two distribution facilities that serve furniture and playground builders in Ohio, Pennsylvania, and Indiana. The company is based in Millersburg, OH. Doug Holmstead, the founder of Home & Leisure, and Eugene Miller, the founder of Vinyl Tech, will remain in leadership positions in partnership with Tangent.
Tangent is a manufacturer of high-density polyethylene (HDPE) lumber used for outdoor furniture, structural applications, and marine decking. In recent years, HDPE lumber has become a substitute for traditional building materials in outdoor furniture and other applications given its durability and aesthetics.
Tangent uses post-consumer recycled milk bottles (more than 175 million bottles each year) as a primary raw material along with many other post-industrial recycled waste streams. Customers of Tangent include original equipment manufacturers, municipalities and businesses including restaurants, hotels and country clubs. The company is headquartered in a 200,000 square-foot facility near Chicago in Aurora, IL (www.tangentusa.com).
The buys of Home & Leisure and Vinyl Tech extend Tangent’s capabilities in sheet manufacturing, fabrication and assembly, as well as in distribution and fulfillment for key geographies. Annual revenues for the combined company are now approximately $120 million. “Having founded Tangent in 2003, I am excited to partner with two strong founder-led organizations to collectively serve our customers with enhanced capabilities and industry-leading innovation,” said Guy DeFeo, CEO of Tangent.
The Sterling Group invests in manufacturing, industrial services and distribution companies that have enterprise values from $100 million to $750 million. The firm emphasizes an operational approach in partnership with management teams to grow and improve the companies it acquires. Since its founding in 1982, The Sterling Group has sponsored the buyout of 55 platform companies and numerous add-on acquisitions with a total transaction value of over $10 billion. The firm is headquartered in Houston (www.sterling-group.com).
The Sterling Group acquired Tangent through its fourth fund in 2018. The firm continues to seek add-acquisitions of wood-alternative material manufactures.
© 2019 Private Equity Professional | September 23, 2019
