Evanston, Ill., January 11, 2022 – Industrial Opportunity Partners (“IOP”), an operations-focused private equity firm based in Evanston, Ill., today announced that it has formed Applegate Greenfiber Holdings LLC (“Applegate Greenfiber” or the “Company”) through the simultaneous acquisitions of Applegate Holdings, LLC (“Applegate”) and the assets of Greenfiber Holdings, LLC (“Greenfiber”). With 17 manufacturing locations, Applegate Greenfiber is the largest North American producer of cellulose insulation. In addition to its robust thermal, acoustic, fire, and air insulation properties, cellulose insulation is a carbon negative, sustainable product that is made primarily from recycled materials, does not require harsh chemicals to produce, and contributes towards lower energy usage. Applegate Greenfiber represents the ninth platform investment for IOP’s third fund, Industrial Opportunity Partners III, L.P. Terms of the transaction were not disclosed.
Applegate is a manufacturer, marketer, and distributor of cellulose insulation for the residential remodeling and new-home construction markets. Applegate sells its products primarily through the contractor, builder, manufactured housing, and building-products distributor channels.
Greenfiber is the largest U.S. manufacturer, marketer, and distributor of cellulose insulation. Greenfiber sells through major home improvement retailers, contractors, and other distribution channels, with its flagship product sold under the “Sanctuary” brand.
IOP is partnering in the investment with members of the Applegate family, the former majority owners of Greenfiber, and members of the management team. The combined Company is headquartered in Charlotte, N.C. and is led by a management team comprised of Applegate and Greenfiber executives. Tom VanAlstine, former Applegate General Manager and CFO and new Applegate Greenfiber President and CEO, commented, “Applegate and Greenfiber both have incredible people that consistently demonstrate how much they care about the industry, the customers, the product, and each other. We believe our businesses complement each other between greater coverage from our larger geographic footprint, the relationships we have built across distribution channels, and a mix of talented individuals. I cannot imagine two companies being a better fit.”
Andy Weller, an IOP Operating Principal, will assume the position of Chairman of the Company. Mr. Weller is a member of IOP’s board of Operating Principals which is comprised of experienced executives who provide leadership to the businesses in which IOP invests. Mr. Weller added, “IOP is pleased to bring these two companies together and provide the resources to support future growth and success. We believe cellulose’s performance and sustainability attributes make it a superior insulation solution and this combination will allow the Company to better communicate that value to the marketplace.”
Kyle Hood, IOP Managing Director, noted, “This combination represents an exciting opportunity for IOP and all stakeholders. We believe there are significant synergies to unlock as the companies begin to work together to better serve their customers. In addition, IOP is pleased to be investing in an opportunity that we believe advances environmentally friendly products in the industrials sector.”
Senior debt financing for the transaction was provided by PNC Bank. Winston & Strawn LLP provided legal representation to IOP in the transaction.
About Applegate
Applegate is a manufacturer, marketer, and distributor of cellulose insulation for the residential remodeling and new-home construction markets. Founded in 1978, Applegate is headquartered in Webberville, Mich. and operates out of ten manufacturing facilities located throughout the U.S. For more information, visit Applegate’s website at www.applegateinsulation.com.
About Greenfiber
Greenfiber is the largest North American manufacturer, marketer, and distributor of cellulose insulation. Greenfiber is headquartered in Charlotte, N.C. and operates out of six manufacturing facilities in the U.S. and one in Canada. For more information, visit Greenfiber’s website at www.greenfiber.com.
About Industrial Opportunity Partners
IOP, an Evanston, Ill.-based private equity firm with over $910 million of committed capital since inception, is dedicated to creating value through investing in manufacturing and value-added distribution businesses with revenue between $50 million and $500 million. IOP focuses on businesses with strong product, customer, and market positions, and provides management and operational resources to support sales and earnings growth at its businesses. For more information, visit IOP’s website at www.iopfund.com.