Drew Foam Switches Sponsors

Drew Foam Switches Sponsors

Wynnchurch Capital has acquired Drew Foam, a maker of expanded polystyrene foam products, from Branford Castle.

Drew Foam’s products are used in industrial, construction, cold chain pharmaceutical and food applications, and consumer markets. The company, led by CEO Bill Givens, was founded in 1965 and is headquartered 80 miles south of Little Rock in Monticello, Arkansas. The company has three additional operating facilities, one each in Georgia, Tennessee, and South Carolina.

“During our partnership with Branford, Drew Foam has achieved the highest record performance in our 50-year history,” said Mr. Givens. “We are looking forward to the company’s next chapter with Wynnchurch Capital and capitalizing on further growth opportunities in the market.”

Branford acquired Drew Foam in June 2018 from Gladstone Investment Corporation. During Branford’s ownership term, the company’s earnings nearly doubled largely through organic sales growth. In November 2019, Drew Foam closed the add-on acquisition of Davis Core & Pad, a Georgia-based manufacturer of expanded polystyrene foam packaging products used in consumer perishables, IT products, and office furniture.

“We are delighted with this highly successful investment for Branford and our limited partners,” said John S. Castle, CEO of Branford.

New York City-based Branford Castle invests in companies that have enterprise values of up to $100 million and EBITDAs of less than $15 million. Sectors of interest include consumer products and services, commercial distribution, industrials and specialty manufacturing, business services, and logistics.

“Our partnership with Bill Givens has been incredible,” said Laurence Lederer, a senior managing director at Branford. “Drew’s unique business model allowed it to achieve significant heights despite challenging economic times. This investment outperformed our optimistic expectations.”

According to Wynnchurch, Drew Foam is positioned to benefit from growing product categories, particularly in geofoam for construction applications and insulated shipping containers for cold chain applications. ​“Wynnchurch is eager to partner with Drew,” said Frank Hayes, a managing partner at Wynnchurch. “The company fits our investment philosophy of acquiring a differentiated market leader known for its strong customer service with significant organic and inorganic growth potential.”

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 $2.28 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 Toronto.

Deloitte Corporate Finance was the financial advisor to Drew Foam.

© 2020 Private Equity Professional | November 11, 2020

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