Heartwood Partners enjoyed a fantastic 2024 on multiple dimensions. Highlights include investment in two platform companies, acquisition of seven add-ons completion of two exits, and the hiring and promotion of members of the team including three to Managing Partner. Further, Heartwood’s in-house Value Creation team and unique lower leverage approach, permitted Heartwood portfolio company management teams to grow their businesses and create significant value.
Platform Investments:
Headquartered in Hauppauge, NY, Royal Products is an industry-leading manufacturer and distributor of premium, branded metalworking performance accessories. For over 75 years, manufacturers have trusted Royal Products to optimize the performance, productivity, and profitability of computer numerical control (“CNC”) machine tools. Please visit the Royal Products website at www.royalproducts.com to learn more about the Company’s history and products.
Zeus is a leading full-service provider of electrical, mechanical, low voltage, underground, and engineering services headed by a sophisticated management team with a constructive approach to acquisitions focused on creating partnerships with superior operators and delivering increased operating efficiency and effectiveness to acquired organizations. Heartwood’s investment in partnership with management is structured to fuel growth via organic opportunities and acquisitions in electrical, mechanical, and other services within commercial, infrastructure, healthcare, and education markets in the Southeastern US.
Portfolio Company Add-on Acquisitions:
Exits:
Heartwood exited UW Solutions, a leading manufacturer of advanced surface-coated products used in graphics and warehouse mezzanine decking, to Apogee Enterprises, Inc. In partnership with Heartwood, UW Solutions built a top-tier management team, a state-of-the-art manufacturing facility, and acquired RDC Coatings, thereby enhancing UW’s technology and development capabilities.
Heartwood’s portfolio company M&Q Packaging divested Outlook Group after tripling EBITDA by building its management team, upgrading the ERP, investing in ultra thin-film label converting and manufacturing capabilities, and improving efficiency through lean processes, all while enjoying strong distribution yields from free cash flow.
Leadership Promotions:
In April 2024, Heartwood formally announced a leadership transition which has been underway for several years with Demetrios Dounis, James Sidwa and Ed Tan being promoted to Managing Partners. They serve as members of the Management Committee along with Rob Tucker and Mark Allsteadt.
Promotions:
Recognizing their contributions to the firm, the following team members earned promotions.
- John Newman, Managing Director
- Brian Chung, Vice President
- Saer Brown, Vice President
- Drew Greene, Senior Associate
- Mike Summe, Senior Associate
- David Levesque, Assistant Controller
Team Additions:
- Tiernan Foster-Smith, Associate
- Mason Blake, Associate
Recognitions and Awards:
Please contact the following members of the investment team at Heartwood Partners with investment or add-on opportunities:
John Willert, Partner
jwillert@heartwoodpartners.com
John Newman, Managing Director