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Branford Castle buys Drew Foam Companies

Published 06 June 2018

Branford Castle, a New York-based private equity firm, has acquired Drew Foam Companies, which provides custom-fabricated expanded polystyrene foam (EPS) products serving the packaging, building products and consumer end-markets, primarily in the Southeastern US.

The acquisition is the fifth for the Branford Castle Fund which had its final close in late 2016. 

Branford Castle is purchasing the company from Gladstone Investment Corporation, a publicly funded traded BDC, key management members and a co-investor. 

 "The fund is moving quickly to put capital to work.  We are delighted with the companies we have purchased and their performance to date," said Laurence Lederer, Managing Director, of Branford Castle Partners.  "We are especially excited to partner with Drew Foam's CEO, Bill Givens, and the rest of his team on this transaction."

Headquartered in Monticello, Arkansas, the company has three operating facilities, in Monticello, Portland, Tennessee, and Anderson, South Carolina.  The company, founded in 1965, offers quick turnaround for customers who often demand just-in-time ("JIT") delivery for products. 

 Most competing EPS suppliers require long production (high-volume) runs to create manufacturing efficiencies. Drew offers customers flexibility.  It processes more than 100 different orders per day, with an estimated 80% of its orders manufactured and shipped on company trucks within 24 hours of receipt and 95% shipped within 48 hours. 

Drew has more than 700 customers, with no single customer accounting for more than 5% of sales, and its customer retention rate is in excess of 97%.

Branford Castle Partners president and CEO John Castle said: "Drew's logistical capabilities and ability to deliver low-volume custom products on a just-in-time basis are unique competitive advantages.

"We are looking forward to enhancing the company's packaging-industry growth, extending its customer base, innovating new products and entering new regions." 

The purchase of Drew follows Branford's acquisition of Vitrek, a leading manufacturer of sophisticated electrical safety test and measurement equipment; Surface Preparation Technologies, the leader in cutting rumble strips for roadway safety; Earthlite Massage Tables, the world's No. 1 brand of products for the spa, massage and wellness industries; and Continuum Foot Spas, LLC, a leader in the premium pedicure chair market and a highly complementary bolt-on acquisition for Earthlite.

Terms of the transaction were not disclosed.

Source: Company Press Release