Location

Buffalo Grove, IL

Industry

Agriculture & Chemicals

Investment Status

Realized

Investment Date

May 2015

Realized Date

Sep 2018

Sold to

Incline Equity Partners

Company Information

Investment Thesis

Platte River Value Add

Company Information

  • Headquartered in Buffalo Grove, IL, Profile Products LLC (“Profile Products” or the “Company”) is a leading manufacturer of erosion control, sediment control, vegetation establishment, daily cover and clay-based products serving a diverse set of end markets
  • Market leader with diverse geographic presence and limited product, customer or end market concentration
  • Platte River acquired Profile Products in May 2015 and sold the company to Incline Equity Partners in December 2018

Investment Thesis

  • Industry: Growing market with increasing share as hydraulic wood mulch is more cost effective than competing technologies (substantial intellectual property providing additional barrier to entry)
  • Opportunity: New products, new end markets, international growth and tuck-in acquisitions
  • Strategy: Invest behind developing new horticulture product line; consolidate smaller niche players to expand market presence; and build new facility to provide ample excess capacity for long term growth

Platte River Value Add

Completed three strategic add-on acquisitions, strengthening the company’s market position:

  • Commercialized new transformative product (Hydrafiber) serving the horticulture market
  • Expanded the Company’s manufacturing operations to support growth
  • In less than four years, Profile grew net sales 65%, increased profit margins by 500 bps and more than doubled its EBITDA
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