M&A Deal Summary

Stonebridge Partners, Brookside Capital Partners, Parkway Capital and Spring Capital Partners Acquire Architectural Polymers

On October 4, 2023, private equity firm Stonebridge Partners, mezzanine finance firm Brookside Capital Partners, mezzanine finance firm Parkway Capital and mezzanine finance firm Spring Capital Partners acquired chemicals company Architectural Polymers

Acquisition Highlights
  • This is Stonebridge Partners’ 1st, Brookside Capital Partners’ 1st, Parkway Capital’s 2nd and Spring Capital Partners’ 1st transaction in the Chemicals sector.
  • This is Stonebridge Partners’ 20th, Brookside Capital Partners’ 60th, Parkway Capital’s 21st and Spring Capital Partners’ 43rd transaction in the United States.
  • This is Stonebridge Partners’ 2nd, Brookside Capital Partners’ 8th, Parkway Capital’s 2nd and Spring Capital Partners’ 8th transaction in Pennsylvania.

M&A Deal Summary

Date 2023-10-04
Target Architectural Polymers
Sector Chemicals
Buyer(s) Stonebridge Partners
Brookside Capital Partners
Parkway Capital
Spring Capital Partners
Deal Type Recapitalization
Advisor(s) Griffin Financial Group (Financial)

Target

Architectural Polymers

Palmerton, Pennsylvania, United States
Architectural Polymers is a manufacturer and designer of urethane (rubber) and plastic molds, or form liners, that are used in pre-cast, tilt-up, and pour-in-place concrete construction applications to create textures, patterns, graphic designs and embedded thin brick surfaces on concrete walls. Architectural Polymers was founded in 1992 and is based in Palmerton, Pennsylvania.

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Buyer(S) 4

Buyer

Stonebridge Partners

White Plains, New York, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1986
PE ASSETS 900M USD
Size Middle-Market
Type Sector Agnostic
DESCRIPTION

Stonebridge Partners is a private equity firm that targets investments in mid-sized privately-owned companies or divisions of public companies primarily serving the industrial or commercial marketplaces. The Firm 'particularly seeks companies where manufacturing equipment, processes, technology, patents, brand identity and/or reputation provide sustainable barriers to entry for potential competitors'. Target sectors include specialty manufacturing, value-added distributors, specialty packaging, building materials, and infrastructure. Stonebridge prefers businesses located in the US and Canada. Stonebridge Partners was formed in 1986 and is based in White Plains, New York.


DEAL STATS #
Overall 21 of 21
Sector (Chemicals) 1 of 1
Type (Recapitalization) 9 of 9
State (Pennsylvania) 2 of 2
Country (United States) 20 of 20
Year (2023) 1 of 1
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2023-07-17 Hydraulex

Chesterfield, Michigan, United States

Hydraulex is a remanufacturer and distributor of all major makes and brands of quality hydraulic pumps, motors, valves/servo, and cylinders for a vast variety of industrial, mobile, mining and oil-field applications. Hydraulex Global was founded in 2010 and is based in Chesterfield, Michigan.

Sell -
Buyer
DESCRIPTION

Brookside Capital Partners is an investment management firm focused on stable lower-middle market companies in the US. The Firm typically commits $5 to $30 million per transaction to support buyouts, leveraged recapitalizations, strategic acquisitions and growth. Potential businesses generally have revenue greater than $15 million, and EBITDA of at least $4 million. Industries of interest include business services, consumer, distribution, healthcare, manufacturing, and transportation and logistics. Brookside Capital Partners was established in 2001 and is based in Stamford, Connecticut.


DEAL STATS #
Overall 60 of 65
Sector (Chemicals) 1 of 1
Type (Recapitalization) 12 of 12
State (Pennsylvania) 8 of 8
Country (United States) 60 of 65
Year (2023) 4 of 5
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2023-09-01 SunTree Snack Foods

Phoenix, Arizona, United States

SunTree Snack Foods is a producer of private-label nuts and dried fruit that serves as a source of healthy fats, dietary fiber, and protein. SunTree Snack Foods is based in Phoenix, Arizona.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2023-12-14 Phaedon

Minneapolis, Minnesota, United States

Phaedon is a provider of technology-enabled consumer engagement, loyalty, communication, and brand strategy services. Phaedon is based in Minneapolis, Minnesota.

Buy -
Buyer
DESCRIPTION

Parkway Capital is the mezzanine finance unit of Calvert Street Partners. Parkway's investments typically take the form of subordinated debt, which can be combined with a junior secured loan or preferred stock. If an opportunity calls for common equity, Parkway can also co-invest with other shareholders. Parkway looks to commit $3 to $12 million of capital per transaction in companies with at least $10 million in revenue and EBITDA in excess of $2 million. Funds are generally used to support business expansions, corporate acquisitions, leverage buyouts, recapitalization, ownership transfers, and 'wealth diversification'. Parkway Capital was formed in 2000 and became a unit of Calvert Street in 2019.


DEAL STATS #
Overall 22 of 26
Sector (Chemicals) 2 of 2
Type (Recapitalization) 6 of 7
State (Pennsylvania) 2 of 3
Country (United States) 21 of 25
Year (2023) 3 of 5
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2023-08-17 Stokes Counseling

Naugatuck, Connecticut, United States

Stokes Counseling is a provider of mental health counseling to individuals, families, couples, and groups. Stokes Counseling was founded in 2011 and is based in Naugatuck, Connecticut.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2023-10-10 Peachey Hardwood Flooring

Reedsville, Pennsylvania, United States

Peachey Hardwood Flooring manufactures premium hardwood flooring and related millwork products. The Company offers handcrafted custom products across a broad selection of species, widths, cuts, stains, and finishes to wholesalers and distributors nationwide. Peachey Hardwood Flooring was founded in 1995 and is based in Reedsville, Pennsylvania.

Buy -
Buyer

Spring Capital Partners

Lutherville, Maryland, United States

Investor Investor


Category Mezzanine Finance Firm
Founded 1999
PE ASSETS 600M USD
Size Middle-Market
Type Sector Agnostic
DESCRIPTION

Spring Capital Partners is a mezzanine finance provider for small to medium-sized businesses. Spring invests $2 to $20 million, primarily in the form of subordinated debt with equity features in each transaction. The Firm does not have an industry focus. Spring Capital looks for businesses located in the Mid-Atlantic US with revenues between $10 and $150 million. Spring Capital Partners was formed in 1999 and has offices in Baltimore, Maryland and Radnor, Pennsylvania.


DEAL STATS #
Overall 43 of 45
Sector (Chemicals) 1 of 1
Type (Recapitalization) 11 of 11
State (Pennsylvania) 8 of 8
Country (United States) 43 of 45
Year (2023) 3 of 5
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2023-09-22 Purple RTO Holdings

Los Angeles, California, United States

Purple RTO Holdings operates 63 Rent-A-Center franchise locations spread across the Midwest and Southwest. Purple RTO Holdings is based in Los Angeles, Caifornia.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2023-10-27 Chibuzo

Fort Smith, Arkansas, United States

Chibuzo is a flexible manufacturer of custom, high-mix pallets, crates, grade stakes, mulch, shavings, and sawdust. Consisting of two operating entities, General Pallets & Crates and Southland Manufacturing, Chibuzo specializes in new wood pallets and crating, providing high quality products and value-added services. Chibuzo is based in Fort Smith, Arkansas.

Buy -