Align Capital Partners (ACP) has acquired Marco Rubber & Plastics, a specialty distributor of elastomer components, including O-rings, gaskets, and high-performance seals.
Marco’s specialty rubber and plastic components are used in the aerospace, medical, semiconductor, and chemical markets. The company’s in-house inventory and global network of suppliers represent more than 3,000 material formulations and more than a million SKUs. The company has more than 14,000 customers and through its online ordering system ships more than a million parts each month.
Marco, led by President Chad Belinsky, was founded in 1980 as the Marine and Aerospace Rubber Company (MARCO) and has a 37,000 square foot warehouse and manufacturing facility located just north of Boston in Seabrook, New Hampshire.
“We were looking for an investment partner who understands our market opportunity, believes in our technology platform and unique product offering, and brings clear growth resources to our business,” said Mr. Belinsky. “Align’s relevant specialty distribution experience, marketing and technology resources, and track record of successfully partnering with entrepreneurial management teams fit our needs perfectly.”
ACP’s investment in Marco is the company’s first institutional capital. ACP intends to continue the development of Marco’s technology platform that allows buyers to search and compare products by performance attributes, build Marco’s sales and marketing functions, and pursue a buy-and-build strategy to add additional products and broaden its current distribution capabilities.
“Chad and the Marco management team have built a very unique business model of supplying specialty and custom O-rings and seals designed to solve complex engineering challenges and sealing applications,” said Chris Jones, an ACP managing partner. “Marco creating a technology platform unique to the sealing products market is helping rationalize the industry’s fragmented supplier and customer bases by reinventing the way O-rings and sealing components are purchased. We are thrilled to partner with such a dynamic team and execute on Marco’s many growth opportunities.”
In addition to Mr. Jones, the ACP transaction team included Operating Partner Dave Perotti, Vice President Matt Iodice, and Associate Walker Tiller.
Align Capital Partners makes control investments in companies with enterprise values up to $150 million that have from $3 million to $10 million of EBITDA. Sectors of interest include business-to-business services, specialty manufacturing, and value-added distribution. Last month, Align closed its second fund, Align Capital Partners Fund II LP and Align Capital Partners Fund II-A LP (together ACP II), at the combined hard cap of $450 million.
Align, with offices in Cleveland and Dallas, was founded in 2016 by managing partners Steve Dyke, Rob Langley, and Chris Jones – all formerly of The Riverside Company – and has a total of 18 team members.
© 2020 Private Equity Professional | February 27, 2020