Wynnchurch Capital has agreed to sell Gypsum Technologies, a Canada-based engineering firm, to Fortress Investment Group through a sale of the business.
Gyptech specializes in the design and fabrication of production equipment used for gypsum wallboard and asphalt-shingle manufacturing. The company provides complete turnkey solutions for automated gypsum board plants that convert raw gypsum into finished wallboard.
Gyptech designs and constructs full production lines, offering expertise in raw materials, product finishing, and aftermarket services. Founded in 1993, the company is headquartered southeast of Toronto in Burlington, Ontario, and has additional offices in Sweden and Germany. Gyptech is led by CEO Jeremy McKellar.
“We appreciate all of Wynnchurch’s support as we embarked on an ambitious strategy to be the leading player in the gypsum and roofing industries,” said Mr. McKellar. “They were integral to driving our organic and inorganic growth through investment in human capital, systems, and technology.”
Wynnchurch acquired Gyptech in October 2015. “We invested in Gyptech due to its leading global market position and differentiated capabilities, which made the company uniquely positioned to benefit from capacity expansion and technology upgrades in the wallboard space,” said Frank Hayes, a managing partner at Wynnchurch. “We are proud of the team’s accomplishments and believe we have built a stronger, more diverse business.”
“Gyptech was a founder-owned business that had created a culture of putting the customer and its employees first,” said Neel Mayenkar, a partner at Wynnchurch. “During our partnership, we invested in resources and tools that allowed management to significantly scale the business, which included adding roofing equipment expertise through an acquisition and growing the aftermarket business organically.”
“We are thankful to the Gyptech team for all their hard work. Together, we were able to significantly grow the business through product and market expansion,” said Kevin Hanley, a principal at Wynnchurch. “We believe the company is well positioned to continue to benefit from market tailwinds after a long period of underinvestment in the gypsum and roofing manufacturing industries.”
The gypsum and asphalt-shingle manufacturing sectors are expected to experience steady growth, driven by increasing infrastructure and residential construction projects worldwide. Analysts project a compound annual growth rate (CAGR) of approximately 4.6% in the global gypsum wallboard market through 2028, fueled by demand for eco-friendly and durable construction materials.
Wynnchurch Capital, a private equity firm specializing in middle-market companies, invests in businesses with revenues between $50 million and $1 billion. Its expertise includes recapitalizations, growth capital, management buyouts, corporate carve-outs, and restructurings. Wynnchurch focuses on sectors such as aerospace, defense, and government; building products and materials; consumer and food; manufacturing, industrial, and transportation; and business services and distribution.
In January 2024, Wynnchurch closed its sixth private equity fund, Wynnchurch Capital Partners VI LP, with $3.5 billion in committed capital. Founded in 1999, the firm is headquartered near Chicago in Rosemont, Illinois.
“Gyptech is a great company with a market-leading position supplying equipment that’s foundational to the building construction industry across the globe,” said Ben Green, a director at Fortress. “With strong demand tailwinds and a great leadership team, we’re excited about the company’s growth opportunities. We look forward to working with Jeremy and the team to capitalize on those opportunities.”
Fortress Investment Group, a global investment firm with over $48 billion in assets under management, serves more than 2,000 institutional clients and private investors worldwide. Its investment strategies span credit and real estate, private equity, and permanent capital. Founded in 1998, Fortress is headquartered in New York City.
Lincoln International was the financial advisor to Gyptech on this transaction. Moelis & Company was the financial advisor to Fortress, and Evercore is serving as the placement agent for Fortress on the debt financing for the acquisition.
© 2024 Private Equity Professional | December 10, 2024
