Stout Advises Blackford on Sale of Custom Profile to Mosaic

May 08, 2019

Stout announced that CUP Acquisition, LLC, dba Custom Profile (“Custom Profile”), a portfolio company of Blackford Capital, has been acquired by Mosaic Capital Partners, a private equity firm, based in Charlotte, NC. Stout served as exclusive financial advisor to Blackford Capital in connection with this transaction.

Custom Profile, founded in 1992 and headquartered near Grand Rapids, MI, is a leading designer and manufacturer of premium, plastic profile extruded products for the office furniture, appliance, medical, consumer products, and other end markets. As a result of the transaction, Custom Profile will become an employee-owned company through a new ESOP structure facilitated by Mosaic.

“Our partnership with Mosaic and the new ESOP structure represents a phenomenal cultural fit for our organization. We are excited to take the company to the next level with direct participation from our dedicated workforce,” said John Boeschenstein, CEO of Custom Profile.

Martin Stein, Blackford Capital Founder and Managing Director, said, “Stout Managing Director Mike Benson and his associates at Stout brought an impressive combination of insight, guidance, and industry experience to the complex process of exiting a successful portfolio company and establishing this new structure for Custom Profile.”

“Having deep insight into the Custom Profile business and long standing relationships with its management team, we understood the significant impact that Mosaic and this new ESOP structure could provide in terms of value-creation opportunities for the company and its dedicated employees,” said Stout’s Mike Benson.

Stout was originally hired by Custom Profile seven years ago to sell the company to Blackford Capital and was re-hired by Blackford Capital to execute the private equity firm’s portfolio exit. Custom Profile Holdings, Inc., in partnership with Mosaic Capital Partners, LLC, becomes an employee-owned company (ESOP).

Stout’s Chris Hannah and Ryan Bowles assisted in executing the deal.

Varnum LLP served as the legal advisor and deal counsel to Custom Profile and Blackford Capital.

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