Custom Profile marks Blackford’s second exit from the Michigan Prosperity Fund
Blackford Capital, a national private equity firm headquartered in Grand Rapids, Mich., today announced its exit from its ownership of Grand Rapids, Mich. based Custom Profile. Founded in 1992, Custom Profile is a leading manufacturer of premium plastic extruded parts servicing the office furniture, appliance, and medical device industries. The company operates out of locations in Walker and Grand Rapids, Michigan along with a facility in Mexico. For more information, visit custom-profile.com.
Blackford Capital, which specializes in professionalizing and rapidly growing founder and family-owned businesses in the lower middle-market, acquired Custom Profile in April of 2012. Blackford purchased the business from Sam Nicholas and continued to work with Mr. Nicholas post-acquisition, eventually transitioning leadership to the current CEO, John Boeschenstein. Custom Profile was the first investment of Blackford Capital’s Michigan Prosperity Fund, I. Blackford and the board provided strategic direction and leadership succession planning to drive continued operational improvements and topline growth initiatives throughout the ownership period. In 2016, Custom Profile completed the acquisition of a division of Bemis Manufacturing Company, providing inroads into the medical industry. Since the acquisition, Custom Profile has experienced tremendous growth, with revenues more than doubling and profitability increasing dramatically. The business continues to grow and was included in Inc. 5000’s fastest-growing private companies in both 2017 and 2018. Further, the company has been recognized by Plastics News as one of the best places to work in the plastics industry and earned the ‘Best and Brightest in Wellness’ award for three consecutive years.
Blackford completed the sale to the employees of Custom Profile in partnership with Charlotte, NC based Mosaic Capital Partners, LLC through an employee stock ownership plan. Mosaic is a private equity company focused on facilitating ESOP buyouts of lower middle-market manufacturing companies across the country. Custom Profile marks the 9th active portfolio company for Mosaic. Blackford was very pleased with the ESOP structure as it provides the business with exceptional ability to self-direct growth and speaks volumes to the leadership teams’ commitment, capabilities and track record.
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“Blackford is thrilled to announce the Custom Profile exit to our limited partners, marking another major milestone for the Michigan Prosperity Fund. We couldn’t have asked for a better group of people to work with throughout the course of our ownership at Custom Profile. From the management team and employee base at the company to the board of directors and outside advisers, we sincerely enjoyed this partnership every step of the way. After an exciting and successful seven years we believe Mosaic represents an excellent buyer for the business and gives the company excellent prospects for continued successful in the future. Blackford is eager to continue buying and building companies in the lower-middle market and looks forward to partnering with business leaders in our region,” said Martin Stein, founder and managing director of Blackford Capital.
Varnum LLP, BDO USA, and Stout acted as advisers to Blackford, with Mercantile Bank and Graycliff Capital providing debt financing alongside Mosaic in the transaction.
Custom Profile marks the most recent exit from Blackford Capital and its second from its Michigan Prosperity Fund, which invests in lower middle-market manufacturing, distribution, and business service companies primarily within the state of Michigan. Other portfolio companies in the Michigan Prosperity Fund include: Mopec (Oak Park, MI), Grand Power Systems (Grand Haven, MI), Burgaflex, NA (Fenton, MI), Grand Equipment (Hudsonville, MI), Quality Aluminum Products (Hastings, MI), Davalor Mold Company (Chesterfield, MI), and Ellison Bakery (Ft. Wayne, IN).
Date: May 06, 2019
Source: Cision
