PurposeExpand Ownership to Management
Transaction DynamicsCorporate Divestiture and Management Buyout
The Engineered Films Group of PolyOne Corporation, formerly O’Sullivan Films, was a leading manufacturer of customized, high-performance polymer films. Materials were used in diverse applications, including automotive instrument and door panels, flooring, wall coverings, notebook covers, and pool liners. The company’s primary manufacturing facilities and headquarters remain in Winchester, Virginia.
PolyOne Corporation (NYSE: POL) made the decision to divest the division and provided management with the opportunity to acquire the business unit. Though the opportunity for management was quite attractive, the division was in the midst of a turnaround, which created challenges in arranging the financing for the buy-out.
How we helped
The financing was arranged and in January 2006, RTK principal Jeff Moore and friends co-invested with management and the seller to effect the management buy-out of O’Sullivan Films. The company grew to become North America’s leading supplier of single-ply vinyl and thermoplastic olefin sheeting to the automotive industry for instrument panels, and the premier producer of film for applications ranging from building products to medical products.
The company was sold to Konrad Hornschuch AG (“KH”) of the Hornschuch Group in Weissbach, Germany. As a result of the significant synergies, congruent cultures, and the agreement by KH to invest substantial resources to expand the operation, the shareholders of O’Sullivan rejected an offer from an alternative suitor that incorporated substantially more cash at closing.
Although O’Sullivan was ultimately sold to the Continental Group, the company continues to be led by many of the original management team members and has significantly increased its employee base.
We are a family-owned, private investment firm seeking partnerships with middle- market companies in industries where our expertise enhances value, sustains growth, and supports company management.
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