Graham Partners Shops Early for the Holidays

Graham Partners, a private investment firm focused on investing in businesses with advanced manufacturing technologies, innovative product development capabilities, and strong growth potential, is pleased to announce the completion of strategic add-on acquisitions for portfolio companies, Infiltrator Systems, Inc. (“Infiltrator”), LINE-X, Chelsea Building Products (“Chelsea”), and HB&G, as well as the completion of the second dividend recapitalization at Infiltrator since June.

Infiltrator, the world’s leading manufacturer of products for the onsite wastewater industry, has acquired ICC Technologies LLC (“ICC”), a leading designer and manufacturer of synthetic aggregate drainage systems, similar to those already manufactured by Infiltrator. This is Infiltrator’s third acquisition in the last three years, and its fifth under Graham’s ownership. The acquisition of ICC enables Infiltrator to further diversify its product offering and creates an opportunity to realize significant synergies.

Rob Newbold, Managing Principal at Graham Partners, states, “Infiltrator’s EBITDA has doubled over the last two years and we look forward to seeing this momentum continue into 2014. We are excited about the acquisition of ICC, as well as management’s additional growth plans for the future. This includes the company’s new line of injection molded tanks, which are already changing the industry, and should provide significantly above market growth for many years to come.” As a result of Infiltrator’s strong organic growth, the company recently completed its second dividend recap of the year, returning a total of over $120 million to its equity investors in 2013 alone.

LINE-X, a leader in providing customized accessories and protective products and services for the automotive and industrial markets, completed its second add-on acquisition of the year, Canadian Poly Coatings (“CPC”). Since 2009, LINE-X’s strategy has been largely focused on acquiring its legacy master franchisees with the goal of streamlining its distribution channel. The acquisition of CPC, the last remaining North American franchisee, represents the final step in fulfilling this strategy.

In November, Chelsea acquired the assets of a small Pennsylvania based cellular PVC building products extruder. This will help expand Chelsea’s existing high growth cellular PVC line of mouldings, while allowing the company to also expand its overall capacity. Operations will be consolidated into Chelsea’s Oakmont, PA facility.

HB&G, a leading manufacturer of high quality synthetic products for porch and deck applications, recently acquired the assets of Arbors Direct, Inc. (“ADI”). ADI provides HB&G the capability to in-source pultruded column production, which results in greater operational efficiency and significant cost savings for the company. Additionally, ADI enhances HB&G’s current product offering through the introduction of a new pergola line used in the outdoor home/pool segment.

FOR FURTHER INFORMATION CONTACT:

Christina Morin (cmorin@grahampartners.net)
Tel: (610) 408-0500 / Fax: (610) 408-0600
www.grahampartners.net
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