Blue Wolf Capital Partners has sold The Mulch and Soil Company, a provider of lawn and garden products, to CenterGate Capital.
The origin of The Mulch and Soil Company begins with Blue Wolf’s acquisition of Suwannee Lumber Company in 2013 and the spin-out of its Suwannee River Mulch division in 2015 as a separate portfolio company. In 2017, Suwannee River Mulch acquired Florida-based Forestry Resources and the combined company was renamed The Mulch & Soil Company (TMSC). A year later, TMSC added on again with the buy of Florida-based K&B Landscapes. In 2018, Blue Wolf began to exit Suwannee Lumber when it merged the business with publicly traded Conifex Timber.
Today, TMSC is a manufacturer and distributor of mulches, soils, decorative bark, and other ground cover products to lawn and garden retailers and commercial landscapers. Company-owned brands include Suwannee River, Jungle Growth, FloriMulch and K&B.
TMSC, led by CEO Mark West, is headquartered in Fort Myers, Florida and operates four manufacturing facilities with 165 employees across Florida. Mr. West will continue to lead TMSC in partnership with CenterGate.
“In 2018, Blue Wolf recognized the incredible potential to create and scale a regional leader in landscape products – and with their support, The Mulch and Soil Company has grown into one of Florida’s leading manufacturers and distributors of mulch and soil products,” said Mr. West. “Over the years, Blue Wolf has served as a true partner and their operational expertise has played a critical role in enabling us to successfully integrate three distinct companies and cultures into one cohesive workforce and network of plants across the state.”
“The Mulch and Soil Company is a quintessential Blue Wolf investment, which involved a complex carve-out and integration of three companies and demonstrates the value of our niche sub-sector specializations,” said Adam Blumenthal, the managing partner of Blue Wolf. “By carving out Suwannee’s mulch division; integrating two founder-run businesses; and recruiting a best-in-class management team comprised of industry veterans, we built a strong platform of scale that is now well-positioned for long-term growth in one of the most attractive U.S. markets for landscape products.”
New York City-based Blue Wolf invests from $25 million to $250 million of equity in companies that have at least $50 million of revenue and an enterprise value of $50 million to $500 million. Sectors of interest include healthcare, building products, energy services, manufacturing, distribution, and industrial.
“We are enthusiastic to partner with Mark and the entire TMSC team,” said Tiffany Kosch, a managing partner at CenterGate. “The management team has an impressive history of success and a compelling vision for the future. We look forward to helping them execute on that vision.”
Austin-based CenterGate invests in lower middle-market companies that have from $20 million to $250 million of revenue and up to $20 million of EBITDA. Sectors of interest include business services, industrials, energy services, consumer, and healthcare. In December 2016, the firm held an above target and oversubscribed final closing of CenterGate Capital Partners I LP with $350 million of capital commitments.
Brown Gibbons Lang was the financial advisor to Blue Wolf on this transaction.
© 2021 Private Equity Professional | May 6, 2021
