Windjammer Capital Investors has sold its portfolio company Protective Industries to Berwind Consolidated Holdings, a family-owned investment management company. Windjammer acquired Protective Industries through its third fund in May 2011.
Protective Industries (DBA Caplugs) is a manufacturer of plastic protection products. The company’s products include molded and extruded caps, plugs, masking, and other products that are used in a range of industries to keep items protected during shipment and storage. Caplug’s products are also used to keep open ports free of contaminants, protect machined threading from damage, and to provide a covering for rough edges, exposed bolts, and exposed pipe ends. The company specializes in injection molding, vinyl-dip molding and plastic extrusion, producing approximately 2 billion pieces per year. Caplugs was founded in 1948 and is headquartered in Buffalo with an additional facility in China (www.caplugs.com).
In May of 2011, Windjammer partnered with management and other investors to acquire Caplugs. During the firm’s ownership period, revenues and EBITDA more than doubled. The company achieved these financial results through both organic growth and add-on acquisitions.
“From the beginning of our investment in Caplugs we knew there were a number of acquisition targets to pursue. Through our disciplined M&A approach we were able to augment the platform’s business through four acquisitions which increased the company’s product breadth, geographic reach and positioned the company to take share in high growth markets,” said Greg Bondick, Managing Director of Windjammer. “This M&A plan was complemented by a series of organic market initiatives that added significant earnings momentum as well, such as the implementation of a new product development program, a reorganization of the sales and marketing functions, and the construction of a purpose built Chinese manufacturing facility.”
Windjammer makes control investments in middle market businesses with EBITDAs from $10 million to $40 million. Sectors of interest include advanced manufacturing, specialty distribution and business services. The firm is currently investing out of Windjammer Senior Equity Fund IV with capital commitments of $725 million. Windjammer was founded in 1990 and is based in Newport Beach, CA and Waltham, MA (www.windjammercapital.com).
The buyer of Caplugs, Berwind Consolidated Holdings, is part of Berwind Corporation, a fifth-generation, family-owned investment management company. Berwind targets middle market companies with transaction values of $75 million to $700 million, and focuses on manufacturing businesses in a range of industries including pharmaceutical, specialty chemical, office and craft, automotive, consumer and natural resources. . The firm has roots that date back to 1886 and is based in Philadelphia, PA (www.berwind.com).
Houlihan Lokey acted as Caplugs’ financial advisor and Choate Hall & Stewart provided legal counsel.
© 2015 PEPD • Private Equity’s Leading News Magazine • 4-15-15