Ironwood Capital has made a subordinated debt and minority equity investment in Industrial Timber, one of the largest designers and manufacturers of outsourced, ready-to-assemble just-in-time wooden frames to the upholstered furniture industry.
The customers of Industrial Timber include many of the top furniture manufacturers in the United States and the company is active in manufacturing more than 100,000 frames each week. Industrial Timber was founded in 1999 and is based in Hiddenite, NC (60 miles north of Charlotte) with manufacturing facilities throughout the southeast (www.thesmartplay.com).
Many of Industrial Timber’s mill facilities are located either near or inside its customers’ facilities and deliver frames on a just-in-time basis, greatly reducing freight and storage expenses. “By partnering with Industrial Timber, our customers realize cost reductions of 10% to 30%, directly impacting their bottom line,” said company founder and CEO Mike Ruch.
“Industrial Timber has forged long-term customer relationships with many of the premier household furniture manufacturers in the US,” said Ironwood Capital President and Chief Investment Officer Carolyn Galiette. “The company has a deep knowledge of frame design and woodworking and the ability to streamline operations for superior yields and reduced waste, providing a significant competitive advantage.”
Ironwood Capital provides non-control growth capital to middle market companies. Investments take the form of subordinated debt and preferred stock in amounts ranging from $5 million to $20 million to support business owners and financial sponsors in growth financings, full and partial recapitalizations, generational transitions and buyouts. Ironwood Capital is headquartered in Avon, CT (www.ironwoodcap.com).
“As both a leader and innovator in upholstered furniture frame engineering and manufacturing, Industrial Timber fits well within our outsourced niche manufacturing vertical,” said Ironwood Capital Managing Director Alex Levental. “Additionally, we’re impressed with Mike Ruch and his entire management team and are confident in their ability to continue to build on their previous success.”
“With the investment from Ironwood Capital now completed, Industrial Timber is well-positioned to significantly ramp-up sales and production volume through organic growth and strategic acquisitions,” concluded Mr. Ruch.
© 2017 Private Equity Professional | November 29, 2017