Heartwood Partners, in partnership with Royal Products’ senior management team, has made a growth equity investment in the company.
Royal Products is a manufacturer and distributor of metalworking accessories that improve the performance, productivity, and profitability of computer numerical control (CNC) machine tools, including CNC lathes, machining centers, and grinders.
Royal’s products include workholding accessories, mist collectors, tooling, drill chucks, deburring tools, and automation equipment, which are sold through a network of industrial distributors, machine tool distributors, and OEM machine tool builders. According to the company, 97% of its product orders are shipped on the same day.
Royal was founded in 1946 by Edward Royal. Today, it is led by CEO Tom Sheridan with a headquarters on Long Island in Hauppauge, New York.
“We are thrilled to announce our partnership with Heartwood Partners and start the beginning of an exciting new chapter in Royal’s growth,” said Mr. Sheridan. “Heartwood and our management team are fully committed to preserving the exceptional customer service and distinctive family business values that set Royal apart in our industry. We are confident that Heartwood’s commitment to maintaining a strong balance sheet and the resources they provide to support growth will position the company for continued success.”
“We are excited to partner with Royal Products and its management team. Royal has developed an incredibly strong foundation over its 75+ year history through its dedication to best-in-class products and exceptional customer service,” said Demetrios Dounis, a managing partner of Heartwood. “Royal aligns perfectly with our approach of partnering with management teams and our focus on growth through investment in people, processes, and add-on acquisitions. We intend to drive future growth by leveraging the company’s well-established brand and market leadership to expand into new markets, both organically and through strategic add-on acquisitions.”
Heartwood invests in United States-based companies with revenues between $20 million and $250 million and EBITDA between $3 million and $30 million. Sectors of interest include food, agriculture, specialty chemicals, niche manufacturing, packaging, and industrial and consumer services.
Heartwood is investing through its fourth fund, Heartwood Partners Fund IV LP. The Norwalk, Connecticut-based firm was founded as Capital Partners in 1982 and changed its name to Heartwood Partners in September 2020.
Lincoln International was the financial advisor to Heartwood Partners, and Carl Marks Advisors advised Royal Products.
© 2024 Private Equity Professional | September 24, 2024
