Evanston, Ill., November 8, 2018 – Industrial Opportunity Partners (“IOP”), an operations-focused private equity firm based in Evanston, Ill., today announced its investment in Reed’s Metals (“Reed’s” or the “Company”) through its existing portfolio company Union Corrugating Company (“Union”), in partnership with Reed’s existing shareholders and management team. Reed’s will operate as a separate business unit of the Union platform and will continue going to market under the well-known Reed’s brand. Terms of the transaction were not disclosed.
Reed’s is a manufacturer and distributor of metal roofing systems and pre-engineered metal buildings. The Company is headquartered in Brookhaven, Miss. and has a total of seven manufacturing facilities and one sales office across the Southeastern U.S. Reed’s has approximately 245 employees spanning its eight locations. The Company’s products are used in residential, commercial, post-frame/agricultural and other industrial applications. Reed’s customer base consists of contractors, wholesalers and homeowners.
Union is a manufacturer of metal roofing systems and roofing components based in Fayetteville, N.C. with eleven manufacturing facilities located throughout the Southeastern and Midwestern U.S. Union has approximately 300 employees spanning its eleven locations. Union’s products are used in residential, commercial, and post frame/agricultural applications. The Company serves customers in over 30 states through a broad range of channels, including home centers, lumber retailers, wholesalers, and contractors. IOP acquired Union in 2016.
IOP and Union are partnering in its investment with Bernie Reed, Reed’s President, Chief Executive Officer, and Founder, and the Company’s management team, all of whom have ownership interests and will remain in their current leadership roles. IOP Operating Principal Dave Mackin will remain as Chairman of Union, overseeing both Union and Reed’s. Mr. Mackin 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. Mackin noted, “We believe Reed’s has an established brand known for excellent customer service, delivery and quality, which is a testament to what Bernie and his partners have built over the years.”
Union, President and Chief Executive Officer, Keith Medick noted, “We were drawn to Reed’s due to the complimentary attributes we believe it has with Union. Going forward, the two companies will operate as distinct business units in the marketplace while being collaborative in leveraging the supply base in order to provide value for our customers.”
Mr. Reed commented, “My team and I are extremely excited to partner with Union and IOP. Our partnership was formed in order to increase the product offering for our respective customers and that will be our focus going forward.”
VRA Partners and McDermott Will & Emery LLP represented IOP and Union in the transaction. Generational Equity represented the shareholders of Reed’s. Regions Bank and Patriot Capital provided financing for the investment.
About Reed’s Metals
Reed’s is a manufacturer and distributor of metal roofing systems and pre-engineered metal buildings. The company is headquartered in Brookhaven, Miss. and has a total of seven manufacturing and one dedicated sales office. For more information, visit Reed’s website at www.reedsmetals.com.
About Union Corrugating Company
Union is a manufacturer of metal roofing systems and roofing components for use in residential, commercial, and post frame/agricultural applications. The company is based in Fayetteville, N.C. with eleven manufacturing and distribution facilities. For more information, visit Union’s website at www.unioncorrugating.com.
About Industrial Opportunity Partners (IOP)
IOP, an Evanston, Ill.-based private equity firm with $910 million of committed capital since inception, is dedicated to creating value through investing in manufacturing and value-added distribution businesses with sales between $30 million and $400 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.