Transaction Overview
- Represented Thermoforming Technology Group (“TTG”), a portfolio company of Spell Capital, in its sale to Tenex Capital Management (“Tenex”).
- Sold under the Brown and Lyle brands, TTG is North America’s leading manufacturer and servicer of highly-engineered thermoforming equipment used in the critical conversion of plastic sheet into high-value-add products, where quality, throughput, and efficiency are paramount.
Key Observations
- Client decided to explore a sale of TTG to achieve liquidity on its investment after holding the business for nearly eight years and successfully integrating the Lyle brand into Brown’s operations and facility.
Drivers of Interest
- Market leading brands with comprehensive portfolio of technology-enabled plastic processing solutions.
- North America’s largest installed base fuels attractive high-margin regular and recurring revenue.
- Diverse, global end markets with significant long-term growth potential as thermoforming displaces competing processes.
- Long-standing, non-concentrated blue-chip customer base anchored by technical relationships.
- Solid forecasted revenue and EBITDA growth with minimal capital expenditure requirements.
- Attractive platform for organic and acquisition-related growth.