In partnership with an investment firm, a local manufacturer’s employees have purchased their company from a private equity firm.
Walker-based Custom Profile partnered with Charlotte, North Carolina-based Mosaic Capital Partners to purchase all of Custom Profile's equity from Grand Rapids-based Blackford Capital, according to Custom Profile last week.
Terms of the deal were not disclosed.
Blackford Capital was the majority owner of Custom Profile.
The transaction allows Custom Profile to transition to a 100-percent employee-owned company through an employee stock ownership plan, or ESOP.
The company’s current leadership team, including CEO John Boeschenstein, will remain in place.
“Sam Nicholas founded the business in 1992 and grew Custom Profile to the point where it made sense to sell to Blackford Capital in 2012,” Boeschenstein said. “Blackford Capital was the right partner to support the growth we have experienced until today.
“This new partnership with Mosaic is an excellent opportunity for Custom Profile to access the capital necessary to grow, while sharing the benefit of that growth with our employees. We look forward to working with Mosaic Capital Partners to continue growing the value of our business for our employee-owners.”
Custom Profile said it is planning further expansion in the southeast U.S. to “better support its growing customer base.”
Founded in 1992, Custom Profile is a manufacturer of plastic extrusion products, primarily for the office furniture, appliance, medical, recreational and RV and point of-purchase markets.
Its facilities are in Walker, Grand Rapids and Juarez, Mexico.
Mosaic Capital Partners
Founded in 2011, Mosaic Capital provides mezzanine debt and equity capital for change-of-control transactions to middle-market companies in the southeastern, mid-Atlantic and Midwest regions.