K&D Plastics, L.P. acquired by Lone Star New Markets/Lone Star Growth Capital
K&D Plastics, a 38-year-old company owned by a private equity group, was a highly profitable manufacturer of custom-engineered seat parts for commercial aircraft, both new and refurbished. The company’s customers included three of the world’s largest manufacturers of commercial aircraft seats. K&D maintained in-depth relationships with its major customers, which needed consistent, on-time delivery of K&D parts.
Revenues and profitability nearly tripled during the private equity group’s term of ownership. With K&D’s increased value, the equity group decided that the time was right to sell.
Lone Star New Markets, L.P. and Lone Star Growth Capital, L.P. formed an acquisition entity to purchase K&D after recognizing the company’s growth potential. Also, one of Lone Star’s goals was to facilitate economic growth in underserved rural areas such as those where K&D operated.
Prior to and throughout the transaction, C.V. Lemmon & Co. served as the exclusive financial advisor to the partners of K&D Plastics. Our services included designing a comprehensive selling program, preparing offering materials, researching for and contacting numerous potential purchasers, evaluating proposals and coordinating negotiations through the closing for maximum value.
Also, during the transaction, we helped K&D management negotiate the opportunity to earn equity in the company going forward.