PNC Riverarch Capital has led an equity recapitalisation of Custom Molded Products (CMP), a manufacturer and distributor of injection moulded plastic components used in spas, pools, and whirlpool baths.
The investment was completed with a co-investment from Florida Capital Partners.
The transaction also included a significant re-investment by the CMP cofounders, William Drury and Charles Li, who will continue to lead the business going forward.
“Our investment in CMP fits well within our strategy of identifying well-positioned companies in attractive and growing end markets,” says Michael Hand, managing director of PNC Riverarch. “We were particularly attracted to the company’s strong customer value proposition and management team. We look forward to supporting continued expansion into new products and geographies, both organically and through strategic acquisitions.”
Headquartered in Newnan, Georgia, CMP serves over 350 active customers and offers over 3,900 products, including jets, valves, filters and various other plastic components.
The transaction for PNC Riverarch Capital was led by Hand; Robert Dolan, director; and David Poss, associate. PNC Riverarch Capital will be represented on the CMP board of directors by Hand and Dolan. Senior debt for the transaction was provided by First Commonwealth Bank.
PNC Riverarch Capital is a middle-market private equity firm which invests in privately held companies headquartered in North America. The firm seeks well-positioned companies where it can invest USD10m to USD50m of capital in support of recapitalisations, leveraged and management buyouts, corporate divestitures and growth financings. PNC Riverarch Capital invests across a variety of industry sectors, including specialised manufacturing, value-added distribution, and outsourced services.