Cyprium Partners has made a mezzanine investment in M-D Building Products to refinance existing debt and to fund the company’s growth.
M-D Building Products designs, manufactures and markets residential and commercial weatherproofing products, including door and window weather-stripping, garage door weather-stripping, pipe insulation and a line of interior and exterior caulk marketed under both the Tower Sealants and DuPont brands. The company also produces aluminum and wood flooring transitions as well as installation tools. The company’s products are sold through hardware chains, specialty distributors and OEMs. M-D was founded in 1920 and is headquartered in Oklahoma City where its primary manufacturing and distribution facilities are located (www.mdteam.com).
In 2007, the current management team of M-D bought the company from the founding Macklanburg family after three generations. Led by majority shareholder Loren Plotkin, the management team has continued to grow and expand the company’s product lines and upgraded manufacturing and distribution capabilities and facilities.
According to Beth Haas Laschinger, a Partner at Cyprium Partners, M-D has significant growth opportunities it can pursue. “Cyprium is very excited to provide growth capital to the owners and management team at M-D Building Products,” she said. “Loren Plotkin and his team have built the company into a leading weatherization and flooring accessory company through their commitment to product innovation and excellent customer service.”
Cyprium provides capital for acquisitions, growth, shareholder or partnership buyouts, refinancings and dividend distributions, without requiring majority control. The firm provides capital via subordinated debt, preferred stock and common stock. Cyprium invests from $10 million to $60 million per transaction in companies with more than $10 million of EBITDA that are based in the US or Canada. The firm has offices in Cleveland, New York, and Chicago (www.cyprium.com).
The investment in M-D is the fifth transaction made through Cyprium Investors IV, which closed in December 2014 with $460 million of capital commitments. The four other investments include B.J. Alan Company, dba Phantom Fireworks (based in Youngstown, OH); CV Holdings, a maker packaging products supplied primarily to the pharmaceutical and food industries (based in Auburn, AL); Hobbico, a distributor of radio-control models and general hobby products (Champaign, IL); and Ice River Springs, a bottled water company with eleven manufacturing plants located in Canada and the US (Shelburne, ON).
© 2015 PEPD • Private Equity’s Leading News Magazine • 7-23-15
