Transaction Overview
- Represented Drew Foam Companies, Inc. (“Drew” or the “Company”), a portfolio company of Gladstone Investment Corporation, in its sale to Branford Castle.
- Drew is a leading provider of custom-fabricated expanded polystyrene foam (“EPS”) products serving packaging, building products and consumer end-market.
- Branford Castle is a lower-middle-market investment fund focused on consumer products and services, industrial and manufacturing businesses, commercial distribution, business services and logistics.
Key Observations
- Gladstone Investment was seeking liquidity on its investment, and Drew was seeking a partner to support the next phase of growth and pursue add-on acquisitions.
Drivers of Interest
- Distinguished, service-centric focus with a high-mix, low-volume model, offering just-in-time delivery through a multi-location footprint.
- Diverse customer base across an array of end markets.
- Flexible and efficient operating platform with a manufacturing footprint in the early stages of lean evolution.
- Proven management team and workforce.
- Multiple near-term growth opportunities, including new product introductions and strategic acquisitions.