Platinum Equity is set to acquire the HC Companies. Financial terms were not disclosed. The transaction is expected to close in the next several weeks, subject to certain closing conditions.
Headquartered in Twinsburg, Ohio, HC operates six manufacturing locations and distribution centers in the US and Canada. The company produces a wide range of planters, pots, and accessories for the greenhouse, nursery, and retail markets, including fiber and biobased solutions produced with post-consumer and post-industrial materials to meet increasing consumer demand for sustainable solutions.
"HC has built an impressive business, with a strong leadership team, dedicated employees, and one of the most comprehensive product lines in the industry," said Platinum Equity Co-President Jacob Kotzubei. "We look forward to working with the leadership team to help the company continue investing in growth while navigating a dynamic market."
The HC Companies President and CEO, Bob Mayer, will continue leading the business following the transition to new ownership.
"We are excited about this new chapter, which presents an opportunity for HC to redouble our commitment to innovation, expansion, and customer service," said Mayer. "Platinum Equity's financial resources and operational expertise will be a great asset to our long-term strategic plans."
Mayer and Platinum executives both expect a seamless transition.
"We have a lot of experience in manufacturing, supply chain, and distribution, and we understand the market very well," said Platinum Equity Managing Director Nick Fries. "We believe HC is an attractive platform for additional growth, both organically and through new acquisitions in adjacent product categories, segments, channels, and geographies."
Platinum Equity's current portfolio includes Husky Technologies, a producer of injection molding equipment used in the production of some lines of horticulture container solutions. Platinum previously owned Orbit Irrigation, a manufacturer of smart watering technologies and other irrigation and garden products and grower supply goods.
The HC acquisition is being led by Platinum Equity's Small Cap investment team, which is actively deploying capital.
In April, the Small Cap team completed the acquisition of a majority stake in Tarter Farm and Ranch Equipment, which manufactures animal gates and fencing solutions, tractor implements, planters and fire rings, and animal feeding and handling equipment for ranchers, large institutional farms and smaller farming enthusiasts.
Willkie Farr & Gallagher LLP is serving as legal counsel, and Alston & Bird LLP is serving as financing counsel to Platinum Equity on the HC acquisition.
Lincoln International is serving as financial advisor to HC on the transaction, and Haynes and Boone, LLP is serving as legal counsel.
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