TPI acquired by Texas-based private equity firm
KALAMAZOO – Total Plastics announced Tuesday that it has been acquired by Prophet Equity, a Dallas-based private equity firm.
Prophet Equity completed the acquisition on March 15, acquiring TPI from Chicago-based metal distributor A.M. Castle & Co.
“Speaking on behalf of the entire organization, we couldn’t be happier with how this process played out and that we are now a portfolio company of Prophet Equity,” said Total Plastics President Tom Garrett.
“This is an exciting acquisition for Prophet Equity,” said Brian Hegi, Managing Director at Prophet Equity. “Over the last 39 years, Total Plastics has grown into one of the largest distributors of plastic sheet, rod, tube, film and tape with significant fabrication capabilities. We look forward to partnering with Tom Garrett, the senior leadership team and the talented employee base to maximize Total Plastics’ tremendous potential.”
Almost 60 days to the day after Castle originally announced its plan to sell TPI as part of a larger debt restructuring plan, Castle CEO Steve Scheinkman announced in a press release that Castle had completed the sale. Castle originally acquired TPI in January of 1996. The sale ends their 20-year partnership.
“Our decision to sell Total Plastics, Inc. is the right one for both entities,” Scheinkman said in a March 15 press release. “It allows Castle to focus on our core metals business and Total Plastics, Inc. to pursue its own strategic objectives. We have enjoyed our relationship with Total Plastics, Inc., and we wish its leadership and employees continued success in their future endeavors.”
“This entire process has been a reaffirmation of the exceptional work we do here at every level,” Garrett added. “It afforded us a unique opportunity to spend time assessing our history, our guiding principles, our successes and our direction. The more time we spent doing that, the more we were encouraged by what we saw and were able to present to potential investors.”
About Total Plastics Total Plastics is a leading distributor and fabricator of plastic sheet, rod, tube, film and tape. It is comprised on 15 stocking locations and two subsidiaries. TPI was founded in 1978 in Kalamazoo, MI, where it continues to make its headquarters. Today, TPI can be found in 10 states and maintains nearly half-a-million square feet of fabrication, warehouse and office space. For more information, visit TPI’s website at www.totalplastics.com or email firstname.lastname@example.org.
About Prophet Equity Prophet Equity is a private equity firm that uses proven, data-driven analytical techniques coupled with over 100 years of investment and management experience to invest in, unlock and realize future value today. Partnering with owners and management teams, Prophet Equity’s team utilizes a toolkit that is Fortune 500 tested and private equity proven to diagnose and drive dramatic value creation. Portfolio company management teams are highly motivated with clear, uncapped incentives based on realized business performance.
Over the last 17 years, Prophet Equity’s Principals have invested and managed over $2.5 billion of value creation across entities with over $4 billion in revenue. Its control equity investments focus on strategically strong, lower and middle market businesses with significant value creation potential. These are typically found in partnerships, corporate carve-outs, divestitures and non-strategic business units of larger companies. Representative business situations include special situations, succession planning, recapitalizations, reorganizations, turnarounds, acquisitions, mergers and bankruptcies. For more information, please visit www.prophetequity.com or call us at 817.898.1500.