Secondary Buyout • Packaging

The Gladstone Companies Acquires Drew Foam

On August 27, 2012, lender The Gladstone Companies acquired packaging company Drew Foam from Spring Capital Partners, Pine Creek Partners and Harren Equity Partners

Acquisition Context
  • This is The Gladstone Companies’ 1st transaction in the Packaging sector.
  • This is The Gladstone Companies’ 9th transaction in the United States.
  • This is The Gladstone Companies’ 1st transaction in Arkansas.
Investment Fate
  • Drew Foam was sold to a consortium of financial buyers in 2018.
  • Drew Foam was sold to a consortium of financial buyers in 2020.
  • Drew Foam merged with another company in 2021.

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M&A Deal Summary

Date August 27, 2012
Target Drew Foam
Sector Packaging
Buyer(s) The Gladstone Companies
Sellers(s) Spring Capital Partners
Pine Creek Partners
Harren Equity Partners
Deal Type Secondary Buyout
Advisor(s) Mesirow Financial (Financial)

Target Company

Drew Foam

Monticello, Arkansas, United States
Drew Foam is a provider of custom-fabricated expanded polystyrene foam ("EPS") products serving the packaging, building products, and consumer end-markets, primarily in the Southeastern United States. Drew Foam was founded in 1965 and is based in Monticello, Arkansas.
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Buyer Overview 1

Buyer

The Gladstone Companies

Investor Investor Investor Investor Investor


Category Lender
Founded 2001
PE ASSETS 2.0B USD
Size Large
Type Sector Agnostic
DESCRIPTION

The Gladstone Companies manages a series of publicly traded investment vehicles and looks to make debt and equity investments in US-based small to middle-market businesses. The Firm focuses on second lien debt, mezzanine debt, secured and unsecured subordinated loans, equity and real estate sale leasebacks. Target investments generally range from $5 to $30 million in companies with over $3 million in EBITDA. Target sectors include manufacturing, industrial products, business and government Services, media, communications, consumer products and services, healthcare services, transportation, specialty chemicals, and energy services. The Gladstone Companies was formed in 2001 and is based in McLean, Virginia.


Deal Context for Buyer #
Overall 9 of 23
Sector: Packaging 1 of 2
Type: Secondary Buyout 4 of 7
State: Arkansas 1 of 1
Country: United States 9 of 23
Year: 2012 1 of 3
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2011-08-11 SOG

Lynnwood, Washington, United States

SOG is a designer, manufacturer, and marketer of knives and tools used by hunters, campers, and outdoor enthusiasts, as well as military and law enforcement personnel. SOG was founded in 1986 and is based in Lynnwood, Washington.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2012-12-05 Frontier Packaging

Tukwila, Washington, United States

Frontier Packaging is a provider of packaging materials and related logistics to the Alaskan seafood industry. Frontier Packaging was founded in 1985 and is based in Tukwila, Washington.

Buy -

Seller Profiles 3

SELLER

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 Context for Seller #
Overall 10 of 25
Sector: Packaging 1 of 1
Type: Secondary Buyout 1 of 5
State: Arkansas 1 of 1
Country: United States 10 of 25
Year: 2012 2 of 3
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2012-04-03 Access Northeast

Marlboro, Massachusetts, United States

Access is a leading regional provider of customized Wide-Area Network, Co-location & Disaster Recovery Solutions through its three Data Centers in Massachusetts and one in New Jersey. Established in 1999, Access has over 1,000 business customers, 1,500 network connections & 25,000 daily end-users on their network.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2012-10-12 DigitalBridge Communications

Ashburn, Virginia, United States

DigitalBridge Communications Corp. is a telecommunications service provider focused on using WiMAX to deliver broadband services to underserved communities nationwide.

Sell -
SELLER

Pine Creek Partners

Washington, District of Columbia, United States

Category Private Equity Firm
Founded 2004
PE ASSETS 53M USD
Size Small
Type Sector Agnostic
DESCRIPTION

Pine Creek Partners is a private equity firm focused on smaller company investments in financial services, select consumer products, travel and leisure, educational products and services, and federal government contractors. Pine Creek looks to invest $3 to $7 million in companies with at least $5 million in annual revenues. The Firm will consider both minority and majority investment situations. Transaction types include leveraged buyouts, management buyouts, recapitalizations, shareholder repurchases, consolidations, growth financings, acquisition financings, and balance sheet restructurings. Pine Creek Partners was founded in 2004 and is based in Washington, DC.


Deal Context for Seller #
Overall 3 of 4
Sector: Packaging 1 of 1
Type: Secondary Buyout 1 of 1
State: Arkansas 1 of 1
Country: United States 3 of 4
Year: 2012 2 of 2
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2012-08-09 The CrossGlobe Group

Glen Allen, Virginia, United States

The CrossGlobe Group is a multi-port logistics platform build providing warehousing, transloading and value added services.

Sell $16M
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2014-03-03 Noble Logistics

Houston, Texas, United States

Noble Logistics is a privately held provider of time critical dedicated logistic and distribution services in over 30 high growth markets throughout the United States. Noble is operated by highly competent and passionate team of business owners that have extensive distribution and logistic experience. Noble Logistics is based in Houston, Texas.

Sell -
SELLER

Harren Equity Partners

Charlottesville, Virginia, United States

Investor Investor Investor Investor


Category Private Equity Firm
Founded 2000
PE ASSETS 450M USD
Size Middle-Market
Type Sector Agnostic
DESCRIPTION

Harren Equity Partners LLC is an East Coast US-based private equity firm focused on mid-sized acquisitions, recapitalizations and growth capital financings. Harren is a generalist firm and will consider companies in a broad range of industries, including aerospace/defense, automotive, business services, building materials, energy services, furniture, industrial machinery, medical products, natural resources, healthcare services, restaurants, retail, and recycling. Prospective companies typically have sales of $30 to $300 million, EBITDA of $7 to $30 million, and are located in North America. Harren prefers businesses with defensible markets positions, proven management, and strong growth potential. Harren Equity Partners LLC was formed in 2000 and is based in Charlottesville, Virginia.


Deal Context for Seller #
Overall 14 of 23
Sector: Packaging 1 of 1
Type: Secondary Buyout 3 of 8
State: Arkansas 1 of 1
Country: United States 14 of 23
Year: 2012 2 of 2
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2012-08-09 The CrossGlobe Group

Glen Allen, Virginia, United States

The CrossGlobe Group is a multi-port logistics platform build providing warehousing, transloading and value added services.

Sell $16M
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2012-12-28 Spartan Energy Services

Lafayette, Louisiana, United States

Spartan Energy Services is a provider of coiled tubing tools and services, fishing services, and flow control services in many of the most active domestic oil and natural gas plays in North America. Spartan Energy Services was founded in 2010 and is based in Lafayette, Louisiana.

Buy -