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Investor Group Led by Arsenal, in Partnership with BayPine, Acquires POLYWOOD

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NEW YORK and BOSTON and SYRACUSE, Ind. , March 25, 2024-- An investor group led by Arsenal Capital Partners ("Arsenal"), a private equity firm that specializes in building technology-rich, market leading industrial growth and healthcare companies, in partnership with BayPine LP ("BayPine"), a private investment firm that drives digital transformation in market-leading businesses, announced that it has acquired Poly-Wood, LLC ("POLYWOOD") from Mayfair Capital Partners ("Mayfair"), a private investment division of Oxford Financial Group, Ltd ("Oxford"). POLYWOOD is a vertically integrated manufacturer of recycled, high-density polyethylene ("HDPE") outdoor living products and a leading brand in this fast-growing, structurally advantaged material category. The terms of the transaction were not disclosed.

Headquartered in Syracuse, Indiana, POLYWOOD is the category creator and a leader of the HDPE outdoor living products market, which is in the early stages of a secular growth trend driven by the material's superior durability, minimal maintenance, and infinite recyclability. POLYWOOD's relentless focus on product design, innovation, and best-in-class production practices has been a long-standing brand promise and is deeply rooted in the company's DNA. POLYWOOD is made of recycled and reusable plastics in a circular, 99% waste-free process that was invented by founder and CEO, Doug Rassi in 1990. Since the company's founding, POLYWOOD has deployed an effective omnichannel go-to-market strategy that leverages a differentiated, build-to-order production model, minimizing inventory risk for all partners, while quickly delivering over 25,000 unique product options to the consumer.

Doug Rassi stated, "We are thrilled about the opportunity to work alongside Arsenal and BayPine in the next phase of our company's growth. 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."

George Abd, an Operating Partner of Arsenal, said, "POLYWOOD'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. Given its vertical integration and eye toward innovation, the company's ability to serve its retail partners and consumers is unmatched in the market. We are excited to work with Doug and his leadership team to continue building on the business' momentum."

Matthew Teller, a Principal of Arsenal, commented, "We see meaningful opportunity ahead for POLYWOOD and significant whitespace in the HDPE market. We look forward to investing behind the company to achieve both key organic and inorganic initiatives and to further drive long-term strategic value."

Steve Ko, a Founding Partner of BayPine, added, "POLYWOOD has distinguished itself through its pioneering brand and sustainable manufacturing processes, unwavering commitment to operational excellence, and focus on fostering a highly collaborative and collegial culture. We see a significant opportunity to further build lasting value at POLYWOOD by leveraging our differentiated digital and technology expertise in partnership with management."

Piper Sandler & Co. acted as lead financial advisor to POLYWOOD with Moelis & Company LLC also acting as financial advisor to the company and Nelson Mullins Riley & Scarborough LLP serving as legal counsel. Baird acted as financial advisor to Arsenal and BayPine and Kirkland & Ellis LLP served as legal counsel.

About POLYWOOD

Founded in 1990 and headquartered in Syracuse, Indiana, POLYWOOD is a vertically integrated manufacturer of recycled HDPE outdoor living products. POLYWOOD is a leading brand in this fast-growing, structurally advantaged material category which benefits from the material's superior durability, minimal maintenance, and infinite recyclability. More than 30 years ago, POLYWOOD was the first to create all-weather outdoor living products using recycled plastics. The company's mission remains the same today – POLYWOOD is forever products, designed to be loved through countless seasons and proudly crafted in America with industry-leading sustainability practices. The company's manufacturing operations are located in Syracuse, Indiana and Roxboro, North Carolina. POLYWOOD currently employs approximately 1,650 people. For more information, visit www.polywood.com.

About Arsenal Capital Partners

Arsenal Capital Partners is a leading private equity firm that specializes in investments in industrial growth and healthcare companies. Since its inception in 2000, Arsenal has raised institutional equity investment funds totaling over $10 billion, completed more than 290 platform and add-on acquisitions, and achieved more than 35 realizations. The firm works with management teams to build strategically important companies with leading market positions, high growth, and high value-add. For more information, visit www.arsenalcapital.com.

About BayPine

BayPine is a private investment firm that seeks to create lasting value for the firm's investors, portfolio companies, and communities in which they operate by driving innovation, digital transformation, and sustainable growth in market-leading businesses across core sectors of the economy. Headquartered in Boston, BayPine was founded by a team of accomplished investors and senior executives who have a shared passion for building enduring companies. For more information, visit www.baypine.com.

Contact:
Contact for POLYWOOD:
Julia Blanter
POLYWOOD
PR@polywood.com

Contact for Arsenal:
Jackie Schofield
Prosek Partners
Pro-Arsenal@prosek.com

Contact for BayPine:
Nathaniel Garnick / Sam Fisher
Gasthalter & Co.
BayPine@gasthalter.com

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