Pittsburgh, Pennsylvania – Tecum Capital (“Tecum”) is proud to announce its investment in Keystone Foam PA, LLC, formerly known as Keystone Foam Corporation, (“Keystone” or the “Company”), a fabricator of proprietary custom foam products for various end markets. The investment represents Tecum’s seventh platform investment out of its new $305 million SBIC fund, Tecum Capital Partners III, L.P.
Tecum and Valley Ridge Investment Partners (“VRIP”) led the acquisition of Keystone in partnership with Centerfield Capital Partners and Petra Capital Partners (collectively, the “Investor Group”), acquiring a stake in the Company to augment the Quinn Family (Keystone’s founders and senior management team) in pursuing strategic growth opportunities. Keystone’s senior management team is led by CEO Brian Quinn and COO Gerald “Jeep” Quinn, Jr., who will continue to run the Company with a focus on growth while providing industry-leading quality and service. The financial terms of the transaction were not disclosed.
Founded in 1983 and headquartered in Derry, PA, Keystone is a fabricator of various foam products and applications that serve the medical, packaging, furniture, and other industries. Keystone specializes in customized foam solutions using conventional polyurethane, polyethylene, viscoelastic foams, latex, and other components.
Brian Quinn noted, “We are excited to bring in partners whose values align with those that our father, Jerry, instilled when he founded the company 40 years ago. We are excited to bring in capital to allow us to support the needs of our customers and to continue to grow our business. There is strong cultural alignment across Keystone and the Investor Group as we collectively work to advance the Company through its next phase of growth.” Jeep Quinn added, “The infusion of capital will allow us to continue our family’s focus of re-investment into our valued people, our equipment, and facilities. With our third generation of Quinn family members entering the business in leadership roles, the investment of capital creates a wonderful opportunity to build upon our heritage here in western Pennsylvania.”
VRIP’s Mark Tedford commented, “Brian and Jeep and their team have built an industry-leading business. We are thrilled to be working with the management team and the Investor Group to help facilitate the next phase of growth for the Company. We are excited to bring our years of operational, strategic planning and organizational development experience to help support the Keystone management team and Investor Group. We have the utmost respect for Tecum as the anchor investor as we have successfully partnered with them for several years on a prior portfolio company investment.”
Matt Harnett, Partner of Tecum, stated, “Keystone represents another opportunity to partner with a passionate and proven management team right in our back yard alongside an experienced sponsor in VRIP. Brian and Jeep’s commitment to the Company and its customers highlights the partnership mentality we look for in our management teams.” Stephen Gurgovits, Jr., Managing Partner of Tecum, added, “We are excited to partner with VRIP on a second transaction and support the execution of their value creation plan. Under the leadership of the Quinn family, Keystone has established itself as a premier fabricator within the foam market. We look forward to building on the great reputation and culture they’ve developed.”
The Deal Team from Tecum consisted of Matt Harnett, Dave Bonvenuto, Paul Oris, and Carter Henderson.
Clearfield, PA-based CNB Bank provided senior debt financing. McGuireWoods and Jones Day provided legal services to the Investor Group while CohnReznick LLP provided accounting, tax, and quality of earnings advice. Dinan Capital Advisors represented Keystone as its exclusive financial advisor and Williams Coulson provided legal counsel to the Company.
ABOUT TECUM CAPITAL
Tecum Capital is a Pittsburgh, Pennsylvania-based private investment firm deploying capital in lower middle-market companies. Tecum provides mezzanine debt and equity investments in growth-oriented middle-market companies across the broader high-value manufacturing, value-added distribution, and business services sectors. Our team partners with independent sponsors, family offices, committed funds, business owners seeking succession plans, and management teams to create shared success. Tecum manages two Small Business Investment Company (“SBIC”) licensed funds and is currently investing out of Tecum Capital Partners III, L.P, a $305 million fund launched in September 2021. Since 2006, the team has collectively invested more than $850 million in over 130 platform and add-on acquisitions. For more information, please visit www.tecum.com.
ABOUT VALLEY RIDGE INVESTMENT PARTNERS
Valley Ridge was founded in New Canaan, Connecticut as an independent sponsor private equity firm to make control investments in lower middle market industrial companies. Valley Ridge searches for unique situations and untapped growth opportunities to build market leading enterprises on the foundations established by visionary entrepreneurs. Valley Ridge’s goal is to build successful partnerships with its investors and the management teams of the companies in which it invests. This marks the firm’s third platform investment and brings the total amount of funds raised and invested to over $215 million since 2018. For more information, please visit www.valleyridgeip.com.
ABOUT CENTERFIELD CAPITAL PARTNERS
Founded in 1998 and located in Indianapolis, Centerfield Capital Partners is a national provider of junior capital to lower middle market companies. Centerfield invests alongside equity sponsors, independent sponsors, business owners, and management teams who seek subordinated debt and equity financing to transform businesses and create value. The firm provides tailored financing solutions to effect leveraged buyouts, recapitalizations, acquisitions, and growth. Centerfield has invested in 100+ companies across a variety of industry sectors and is currently investing its fifth fund with commitments of $400 million. For more information, please visit www.centerfieldcapital.com.
ABOUT PETRA CAPITAL PARTNERS
Petra Capital Partners is a private equity firm engaged in providing growth capital for companies located throughout the United States. The investment team has an established track record of success spanning over 20 years and deploying more than $700 million of capital invested into more than 100 companies. The firm is seeking investments for its current SBIC fund, Petra Growth Fund IV. Petra can invest up to $20 million per company in equity or debt securities with a primary focus on backing high growth business services, tech-enabled services, and healthcare services companies. More information can be found at www.petracapital.com.