Gen Cap America has acquired Custom Plastic Specialties (CPS), a maker of a wide range of promotional products.
CPS manufactures water bottles, stadium cups and steins, hand fans, tote bags, desk accessories, and other household and personal items that are sold exclusively to promotional products distributors. The company has more than 300 SKUs in its product line. CPS was founded in 1993 and is headquartered in Erie, PA (www.keystoneline.com).
The management team of CPS, led by Vice President of Manufacturing Eric Enzbrenner and Senior Vice President of Sales Kippie Helzel, will remain with the company and have equity interests under Gen Cap America ownership. Leon Bilewitz, President and founder of CPS, will remain in a consulting role with the company but will have no equity interest. “CPS is an excellent fit with our firm’s long history of partnering with strong management teams in buyouts of retiring owners,” said Barney Byrd, President of Gen Cap America.
“We are extremely excited to make an investment in CPS and partner with their industry leading senior management team,” said Chris Godwin, Gen Cap America Managing Director. “They have built an exceptional portfolio of quality products and remain focused on taking the next step in the evolution of the company. We look forward to supporting the team in executing their long term strategy.”
Gen Cap America invests in companies with revenues between $5 million and $100 million that are active in the manufacturing, distribution or service sectors. The firm is currently investing through Southwest Fund VII, a $250 million fund which had a final close at its hard cap in January 2017. Gen Cap was founded in 1985 and is based in Nashville (www.gencapamerica.com).
The buy of CPS is the third acquisition completed by Fund VII within the past nine months. In November 2016 Gen Cap acquired Pyramyd Air, a Solon, OH-based distributor of air guns, airsoft guns and BB guns, as well as ammunition and related parts and accessories (www.pyramydair.com); and in January 2017, Gen Cap acquired Gared, a Noblesville, IN-based manufacturer and marketer of athletic equipment to schools and other institutions. Products include equipment for basketball, volleyball, tennis, soccer, handball, field hockey, lacrosse, baseball and football (www.garedsports.com).
© 2017 Private Equity Professional | July 14, 2017
