Generational Group, a prominent advisor specialising in mergers and acquisitions for privately held enterprises, has announced the successful sale of Team Pride Extrusions (TPE) to Republic Strategic Investments (RSI). The deal was finalised on March 15, 2024.
Based in Megargel, Texas, Team Pride Extrusions offers comprehensive manufacturing services in tailor-made aluminium extrusions. Their expertise spans aluminium extrusions, powder coating, CNC machining, punching, and various specialised fabrication and finishing techniques. Their product range encompasses everything from mill-finished extrusions to fully assembled extrusion components, complete with fabrication and finishing touches.
TPE possesses the capability to handle various aluminium extrusions, including small, complex, and difficult shapes, as well as thin-walled (down to .040") and miniature profiles. Additionally, TPE specialises in accommodating small minimum orders and intricate custom designs that larger press extruders may find challenging or decline to undertake. This includes high aspect ratio extrusions (up to 12:1) and lightweight aluminium profiles.
Team Pride Extrusions was previously owned by Darryl Anderson Sr., who served as President, and Todd Lewallen, the Managing Partner. Following the completion of the acquisition, Todd will transition into the role of CEO at Team Pride Extrusions while maintaining his partnership with RSI (Republic Strategic Investments).
RSI is a private equity firm headquartered in Phoenix, Arizona. It is focused on acquiring and developing companies that offer resources, tools, and information to empower men in fulfilling their inherent responsibilities and safeguarding their rights as endowed by their Creator. RSI actively seeks out profitable companies within the manufacturing and e-commerce sectors with revenues ranging from $10 million to $50 million and beyond.
The demand for aluminium is poised for significant growth in the coming years, primarily fuelled by an increasing preference for eco-conscious solutions across various sectors such as transportation, infrastructure, energy, and food security. According to AL Circle’s latest industry-focused report, “The World of Aluminium Extrusions – Industry Forecast 2030”, revealed that in the post-pandemic era, the aluminium extrusion market rebounded in almost all regions, with global extrusion usage reaching an estimated 31.5 million tonnes in 2023. The global aluminium industry faces significant challenges stemming from geopolitical crises, economic slowdowns in major economies, and soaring energy prices. These factors have profoundly disrupted both the market dynamics and the intricate supply chains, prompting heightened concern among industry stakeholders.
Shawn Ingram, CFO and partner, and David Reece, CEO and partner, led the RSI acquisition team.
David Reece said, "Darryl Anderson has built a wonderful company. We expect that Todd Lewallen will carry the torch well and wisely to see TPE grow, Archer County prosper, and Christ honoured."
Don Ho, the Managing Director of Mergers & Acquisitions at Generational Group, was the lead dealmaker who spearheaded the successful closure of the transaction. Lance Thomasson, Vice President of M&A, assisted him in this endeavour.
Ho said, "I am so excited for the future of Team Pride Extrusion and their customers and employees, given the opportunities, capital, and resources Republic Strategic Investments will bring to the Company."
"Todd Lewallen has some brilliant and exciting plans to improve the customer experience, diversify markets, and effectively take the business to the next level. I'm also so pleased to be able to help Darryl Anderson Sr. unlock the equity in his business and achieve his retirement goals."
Michael Goss' M&A - Central Region transaction team is headed by Ho, a long-time dealmaker and executive managing director who primarily serves clients in the Central US. Senior Managing Director James Carr established TPE's initial relationship.
Todd Lewallen said, "As a business operator, I was not regularly exposed to the M&A environment, and I learned through this process how much things have changed in the M&A world and how rapidly it continues to evolve."
Lewallen added, "Right away, I saw the tremendous value that Generational Group imparted through their many high-quality associates that supported Don, and it was absolutely critical and necessary to have an M&A expert leader like Don Ho to guide and close our deal successfully."
"After getting to know Reece and Ingram, their high moral standards and positive character attributes were apparent and appreciated; that is something that is very important to me and the leadership team we have in place. As we had more interaction, it was clear that our people and business enterprise would benefit greatly from David's strong intellect and leadership qualities," stated Lewallen.
Lewallen added, "I had the most interaction with Shawn during the process, and I was very happy to learn of Shawn's lengthy and impressive experience with one of the world's largest aluminium extruders; that will be invaluable to our operations. Shawn has tremendous financial skills and practical operations experience, and I am thrilled to have him as a "running mate" as our CFO. I am honoured to serve as CEO and work alongside these two men, and I expect great things for our people and customers."
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