Fast-growing recycled plastic furniture maker Poly-Wood LLC has changed owners, with private equity firms Arsenal Capital Partners and BayPine LP announcing March 25 that they're acquiring the company.
Terms of the deal for Poly-Wood, which makes Adirondack chairs and other outdoor furniture from high density polyethylene milk jugs, were not disclosed, but a Reuters story from November reporting on a potential sale said the company could be valued at around $1 billion.
Arsenal and BayPine bought Syracuse, Ind.-based Poly-Wood from MayFair Capital Partners, which is a division of Oxford Financial Group.
Poly-Wood founder and CEO Doug Rassi said in a statement that the investment would help the company continue its growth, and he noted BayPine brings capabilities in helping manufacturing firms digitize.
"We are thrilled about the opportunity to work alongside Arsenal and BayPine in the next phase of our company's growth," Rassi said. "Arsenal's deep domain expertise in the polymer processing market and its understanding of our unique manufacturing processes, coupled with BayPine's technology know-how and sharp focus on further developing our digital capabilities, gives us confidence in our go-forward partnership and unique ability to build a strategically important business."
In 2021, Poly-Wood announced it was investing $61 million and adding 300 jobs at its factory in Roxboro, N.C. That came after it said in late 2020 that it was investing $42 million in an expansion of production and recycling capacity in Syracuse. the company started in 1990.
The new owners noted Poly-Wood's differentiated, build-to-order production model for 25,000 items, and its diverse marketing strategy.
"Poly-Wood's longstanding track record of growth and industry-leading position are a testament to the differentiated business model and brand the team has built over the past three decades," said George Abd, Arsenal operating partner. "Given its vertical integration and eye toward innovation, the company's ability to serve its retail partners and consumers is unmatched in the market."
Abd was a longtime plastics industry executive, serving as president and CEO of both Spartech Corp. and Pretium Packaging.
"We see meaningful opportunity ahead for Poly-Wood and significant whitespace in the HDPE market," said Matthew Teller, a principal at Arsenal.