The Business

Clad-Rex Steel, LLC (www.cladrex.com) is a Chicago, Illinois-based specialty manufacturer of vinyl-clad metal used in a variety of industrial, commercial and consumer applications. Vinyl-clad metal is a coated metal product that provides both decorative and functional utility and offers superior aesthetic appearance, durability and surface performance relative to alternative solutions. Clad-Rex has served the vinyl-clad metal market for over 50 years and maintains a leadership position in several niche markets and a growing presence in industrial and consumer markets. The Company’s differentiated business model and the diversity of markets served position Clad-Rex for continued growth and market share expansion.

 

The Industry

Clad-Rex participates in the specialty coated metal market. Within the specialty coated metal market, the Company has emerged as a leader and innovator within the vinyl-clad metal market segment. Vinyl-clad metal can be a viable alternative relative to conventional pre-painted or powder-coated metal. Today, Clad-Rex is considered one of North America’s largest providers of vinyl-clad metal and serves companies that participate in a variety of markets, including appliances, architectural design, building products, foodservice equipment, marine, medical equipment, and point-of- purchase/merchandising displays, among others.

 

The Process

Prestwick Partners initiated this transaction and acted as the exclusive financial advisor to Clad-Rex and its private equity shareholders, Bounds Equity Partners (Chicago, Illinois) and Stonehenge Partners (Columbus, Ohio). Prestwick designed an M&A process, prepared marketing materials, evaluated acquisition proposals, and negotiated the transaction with Main Street Capital Corporation (NYSE: MAIN), a Houston, Texas-based principal investment firm.