Deal Type
Sell-side transaction

Deal Team
Andy Stockett, John Kirkland

Company Overview
Founded in 1978, Available Plastics, Inc. (API) is a family-owned Huntsville, Alabama-based plastics manufacturer that specializes in extrusion and injection molded products. The company produces an extensive range of PVC products for diverse applications, from custom PVC extrusions to PVC pipe and tubing. API’s offerings cater to a wide variety of end markets including construction, manufacturing, and utilities. 

The company has nearly 50 full-time employees and operates out of a 120,000-square-foot facility, with eight extrusion and three injection molding lines that have a capacity of 12 million pounds of product annually.

Situation
API was owned by Suanne Yarbrough, daughter of company founder, Dr. Lewis Brown. After purchasing control of the company from her brother’s estate, Yarbrough retained 100% ownership of API but was not active in day-to-day operations. In 2019, API was on solid financial ground, and Yarbrough explored going to market. A board member reached out to FourBridges for guidance.

Challenge
Shortly after API first met with FourBridges, the company went through some changes in executive management just as the onset of Covid changed circumstances dramatically for the company. The floundering market raised a series of challenges for Available Plastics, from supply chain issues to labor shortages which lasted through 2022. Throughout this difficult time, there was another leadership change. New leadership navigated API through the challenges and the company was back on solid ground in 2023.

Process
API reached back out to FourBridges in the summer of 2023. After reviewing the company’s financials, FourBridges conducted a thorough MarketCheck and contacted potential buyers on an anonymous basis to get valuable feedback about how they might value the company from a multiple of EBITDA and structure standpoint. Based on favorable feedback from the MarketCheck, API felt confident about marketing the company. During the process, FourBridges contacted numerous strategic as well as private equity buyers and received multiple offers.  Ultimately, a local private investment group that was familiar with the company emerged as the best fit from a valuation and intangible benefits perspective. 

Results
Going into the sale, Suanne Yarbrough’s intention was to protect the legacy of her family’s company while obtaining liquidity and diversifying her assets for estate planning purposes. FourBridges was able to find a buyer that respected the culture and heritage of the business, and structured a transaction that met Yarbrough’s financial objectives, while providing continuity for the company’s long-term employees.