Private equity firm Industrial Opportunity Partners (IOP) has invested in Alexandria Moulding Inc., a manufacturer and distributor of wood mouldings. This is the ninth platform investment for the PE firm’s $275 million Industrial Opportunity Partners II fund. In September 2015, the fund also acquired Coldwater Veneer Inc., a manufacturer of hardwood veneer for building products.
IOP typically invests in manufacturing and distribution businesses with sales between $30 million and $350 million. Financial terms of the Alexandria Moulding transaction were not disclosed.
Alexandria Moulding is headquartered in Alexandria, Ontario, and also has facilities in Moxee, Washington and Wilkes Barre, Pennsylvania. The company sells directly to retailers, wholesale building product distributors and industrial customers.
IOP, which is based in Evanston, Illinois, is partnering in the investment with Alexandria Moulding’s CEO Andre Cholette and the company’s management team. The team will remain in their current management roles, focusing on growing the business. Dave Macking, an operating partner at IOP, will take on the role of chairman.
Financing for deal was provided to IOP by Wells Fargo and Scotiabank, with McDermott, Will & Emery serving as the legal adviser to the company. Osprey Capital Partners represented Alexandria Moulding’s shareholders.
Companies in the homebuilding sector have been attractive targets recently. In April, Audax Private Equity-backed Innovative Chemical Products (ICP) announced its acquisition of adhesives maker Fomo Products Inc. Earlier in April, IPS Corp., backed by middle market private equity firm Nautic Partners, purchased Integra Adhesives from management .