Compass Diversified-Backed Foam Fabricators Announces Strate
SCOTTSDALE, Ariz., Sept. 9, 2020 /PRNewswire/ -- Foam Fabricators Inc. (the "Company" or "Foam Fabricators"), a leading designer and manufacturer of custom protective packaging solutions, today announced a strategic investment in Rational Packaging, LLC ("Rational Packaging"), a premier designer and manufacturer of recyclable, paperboard-based structural packaging components. This investment follows the previously announced strategic partnership established between Foam Fabricators and Rational Packaging in July 2020. Financial terms of the transaction were not disclosed.
With a more than 60-year history, Foam Fabricators operates 16 state-of-the-art molding and fabricating facilities across North America, providing products to a variety of end-markets, including appliances and electronics, pharmaceuticals, health and wellness, automotive, building products and others. In January 2018, Foam Fabricators was acquired by Compass Diversified (NYSE: CODI), an owner of leading middle market businesses. With CODI's support, Foam Fabricators continues to execute on its strategic priorities to diversify and drive sustainability, transforming the business from its original focus on molded foam products into a one-stop, diversified packaging platform.
Led by packaging industry veterans, Rational Packaging blends creative design with an engineered-systems approach to manufacture best-in-class structural packaging components. Contrasting the conventional packaging staple – cylindrical paperboard corner posts – Rational Packaging leverages a patented Wave Corner Post design, which uses multiple layers of laminated material that are formed into a wave pattern to create cushioning and impact resistance as well as improved stacking strength. Rational Packaging's wave configuration offers advantages over conventional corner posts and its solutions are engineered using recycled and environmentally responsible inputs, making them fully post-consumer recyclable.
"Rational Packaging's innovative and patent-protected wave pattern designs, sustainable material offerings and unique manufacturing capabilities enhance our ability to provide a growing base of customers with effective and efficient solutions for all of their protective and structural packaging needs," said James K. Hughes, CEO of Foam Fabricators. "As we continue to take purposeful steps forward in our transformation to a full-service packaging solutions provider, we are thrilled to further expand our partnership with Rational Packaging through this strategic investment. We are confident that our customers will greatly benefit from their forward-thinking approach, as well as the addition of Rational Packaging's differentiated structural products to our best-in-class portfolio."
"An industry leader with a strong reputation for high-quality offerings across diverse product categories, Foam Fabricators is the ideal partner for Rational Packaging as we accelerate our commercialization efforts, enhance our production capabilities and expand upon our unique, customer-centric offerings," said Tom Roberts, Co-Founder and Chief Executive Officer of Rational Packaging. "James and the team at Foam Fabricators share our vision for the future and we look forward to growing our customer base together and expanding our footprint into new geographies, while maintaining our unwavering commitment to customer satisfaction."
"Now more than ever, the ability to provide customers with innovative, flexible and sustainable solutions is imperative," said Elias Sabo, Chief Executive Officer of CODI. "This strategic investment creates long-term alignment between two complementary industry players, further positioning Foam Fabricators as a leading one-stop solutions provider and adding structural packaging elements, including fiber-based corner posts, to its impressive offerings. We look forward to building on this momentum in the months and years ahead."
About Foam Fabricators
Headquartered in Scottsdale, AZ, Foam Fabricators is a leading designer and manufacturer of custom protective packaging solutions and componentry made from expanded polymers such as expanded polystyrene (EPS), expanded polypropylene (EPP) and other advanced resins. Founded in 1957, the company operates 16 state-of-the-art facilities across North America specializing in the production and assembly of key components utilized in protective packaging, OEM componentry and temperature-controlled containers. For more information, please visit www.foamfabricatorsinc.com.
About Rational Packaging
Headquartered in Springfield, TN, Rational Packaging designs and manufactures innovative Structural Packaging components and systems that help customers eliminate supply-chain damage while they Assemble, Lift, Load, Stack, and Transport products to consumers. Rational Packaging serves customers throughout North America primarily in the Appliance, HVAC, Consumer Durables, Information Technology, and Textile markets. Key product lines include Structural Corner Posts, Clamp Braces, Edge Protection, and Base Pads. For more information, please visit www.rationalpackaging.com.
About Compass Diversified ("CODI")
CODI owns and manages a diverse family of established North American middle market businesses. Each of its current subsidiaries is a leader in its niche market.
CODI maintains controlling ownership interests in each of its subsidiaries in order to maximize its ability to impact long-term cash flow generation and value. CODI provides both debt and equity capital for its subsidiaries, contributing to their financial and operating flexibility. CODI utilizes the cash flows generated by its subsidiaries to invest in its long-term growth and to make cash distributions to its shareholders.
CODI's nine majority-owned subsidiaries are engaged in the following lines of business:
- The design and marketing of purpose-built technical apparel and gear serving a wide range of global customers (5.11);
- The manufacture of quick-turn, small-run and production rigid printed circuit boards (Advanced Circuits);
- The manufacture of engineered magnetic solutions for a wide range of specialty applications and end-markets (Arnold Magnetic Technologies);
- The design and marketing of wearable baby carriers, strollers and related products (Ergobaby);
- The design and manufacture of custom molded protective foam solutions and OE components (Foam Fabricators);
- The design and manufacture of premium home and gun safes (Liberty Safe);
- The design and manufacture of baseball and softball equipment and apparel (Marucci Sports);
- The manufacture and marketing of portable food warming systems, creative indoor and outdoor lighting, and home fragrance solutions for the foodservice industry and consumer markets (Sterno); and
- The design, manufacture and marketing of airguns, archery products, optics and related accessories (Velocity Outdoor).
Michael Hays, Vice President
Compass Diversified ("CODI")
Joele Frank, Wilkinson Brimmer Katcher
Jon Keehner / Kate Thompson / Julia Sottosanti
SOURCE Foam Fabricators