Riverside Company’s Strategic Move with PFB Insulation
CLEVELAND – The Riverside Company, a notable global investment firm focused on the smaller end of the middle market, has recently made a significant move by signing a definitive agreement to sell its portfolio company PFB Corporation's insulation products business units to Carlisle Companies Incorporated. This pivotal transaction, which is valued at approximately USD $260 million, is projected to conclude in the final quarter of 2024.
Understanding PFB Corporation’s Role in the Market
PFB Corporation, headquartered in Calgary, Alberta, is recognized as a leading provider of Expanded Polystyrene (EPS)-based insulation products across North America. The company’s Plasti-Fab division boasts eight manufacturing facilities throughout Canada, along with three locations in the Midwestern United States. They supply a comprehensive range of EPS building materials and insulation products designed for various applications, including roofing and wall panels, insulated concrete forms, and geofoam blocks tailored for infrastructure use.
Innovative Building Solutions with Insulspan
The Insulspan unit of PFB specializes in the design and manufacturing of Structural Insulated Panels (SIPs). These panels are instrumental in constructing both residential and commercial buildings, as they effectively reduce construction expenses and enhance energy efficiency. With a strong presence in the reseller, distributor, contractor, builder, and infrastructure channels, PFB reaches a diverse clientele.
Riverside's Impact on PFB's Growth
Since taking PFB private in late 2021, The Riverside Company has collaborated closely with PFB's leadership to broaden its distribution channels while investing in technology to automate processes and increase manufacturing capacity. These strategic initiatives have borne fruit, evidenced by the remarkable increase in PFB's earnings, which more than doubled during Riverside’s investment period. The enterprise value of the business tripled, showcasing the success of their partnership.
Voices from Leadership
Robert Graham, CEO of PFB Corporation, expressed sincere appreciation for Riverside's support throughout the strategic growth plan executed over the last few years. He mentioned his pride in the dedication and outstanding efforts of the entire PFB team to achieve this significant milestone. Graham noted, "Our insulation products business aligns exceptionally well with Carlisle's objectives, and we are eager to contribute to their ongoing growth."
Looking Ahead with Carlisle Companies
Sean Ozbolt, Managing Partner at Riverside, highlighted the rewarding experience of partnering with Graham and the PFB team. He conveyed gratitude on behalf of their investors for the vision and impressive execution displayed by PFB's leadership. Notably, PFB was the first company under Riverside to join forces with Ownership Works, a non-profit devoted to fostering broad-based employee ownership across private equity portfolio companies.
Legal and Financial Guidance in the Deal
For this transaction, Houlihan Lokey provided financial advisory services to PFB while Paul Hastings and Blakes offered legal counsel. Their combined expertise ensured a smooth process as PFB transitions to Carlisle Companies, where it will further its mission and operational goals.
The Riverside Company: An Overview
The Riverside Company is a distinguished global private equity firm that primarily aims to invest in emerging businesses valued at up to $400 million. Since its inception in 1988, Riverside has completed over 1,000 investments, cultivating a diverse portfolio that includes more than 140 companies across various sectors.
Stay Connected
For those interested in learning more about The Riverside Company, further details can be found on their website. Additionally, inquiries can be directed to:
Holly Mueller
Marketing Consultant
The Riverside Company
216 535 2236
hmueller@riversidecompany.com
Frequently Asked Questions
What is the primary focus of The Riverside Company?
The Riverside Company primarily invests in growing businesses in the middle market segment, typically valued at up to $400 million.
What are PFB Corporation's core products?
PFB specializes in Expanded Polystyrene (EPS)-based insulation products, including roofing and wall panels, insulated concrete forms, and Structural Insulated Panels (SIPs).
Why is the sale of PFB's insulation products significant?
This sale is crucial as it represents a strategic consolidation for both PFB and Carlisle Companies, allowing for scaling and efficiency improvements within the industry.
How has PFB's performance changed under Riverside's ownership?
Under Riverside's ownership, PFB's earnings more than doubled, and its enterprise value tripled due to effective strategic investments and operational enhancements.
What is the role of Ownership Works in this partnership?
Ownership Works is a non-profit organization that encourages broad-based employee ownership opportunities within private equity portfolio companies. PFB was the first Riverside company to engage with them.
