Volume 47, Issue 10 - October 2012
Grey Mountain Partners Acquires Insulpane
of CT and Orchard Glass
Private equity firm Grey Mountain Partners, in connection with its affiliate company, Consolidated Glass Holdings Inc. (CGH), has acquired Insulpane of Connecticut and Orchard Glass Distributors in Hamden, Conn.
Terms of the transaction have not been disclosed.
The capabilities of Insulpane made it an attractive purchase, according to Tom Ryan, CEO of CGH.
“This is a company that’s able to handle a high number of SKUs, it has two different tempering furnaces and a lot of management know-how,” says Ryan.
In addition, geography also played a role.
“We are looking for companies that give us presence in terms of a geographic footprint adjacent to where we think market demand is going to be or is going to continue to grow, etc.,” he says. “When we do that we try to acquire businesses that have a strong leadership team, have knowledge of specific types of glass, tempered, IG, etc., and the desire is for the owners of these companies to continue with us … We will continue to operate with [Insulpane president] Fred Federico and his sons in the business. They have a strong leadership team and we want that team to continue.”
The goal of the acquisition, Ryan says, is “to promote growth and [for the company to] continue to make successful products,” while also offering Insulpane some new capabilities.
“A number of companies have had to weather some of the same economic downturns in the building products arena as all of us had had to do in the last few years,” he says. “What Grey Mountain has is the ability to produce a fresh injection of capital into some of these businesses, to be able to facilitate growth, to be able to make additional capital purchases … The opportunity is very clearly creating that incremental value not only in terms of adding that injection of capital but also providing the support for future acquisitions to help narrow that footprint.”
He adds, “We’re very excited about Insulpane but we view
this as one of a number of acquisition investments we think will be added
to the CGH family and we’re excited about prospects for future growth.”
Santelli Tempered Glass Reportedly Closes Doors
The company had followed with a third location in Elkhart, Ind., in July 2010, but had sold that operation in December 2011 to Cleer Vision Windows Inc. (see related story in January 2012 USGlass, page 13).
According to local reports published in 2010, the company had chosen to open the Ocala location based on a $249,294 incentive package provided by the city to expand the business there. According to the latest report, published in early September, the Ocala City Council now has voted to sue the company for failing to meet the obligations of the incentive plan, and plans to seek $26,616 plus interest for the money the city had previously paid the company.
Joseph Santelli, president of the company, has gained notoriety for growing his business amid the economic downturn, and in 2011 was named the Pennsylvania Small Business Person of the Year.
In an interview with USGlass magazine in March 2011, Santelli said he hoped to open a fourth location by March 2012 and to have identified a location for a fourth. He also offered a comment on the state of the industry and what he expected in the future.
“It’s obvious that all the bad news with bankruptcies and consolidations is not finished yet,” he said in March 2011. “They say timing is everything, and for several companies over the last couple of years the saying proved to be so true. Great companies, run by very good businesspeople, expanded several years ago because their sales and the economy told them to do so and they ended up on the wrong side of this recession. Barber Glass, Coastal Glass and Traco, to name a few, were well-run companies that expanded at inopportune times. We all must learn from this and hope their experiences will keep us from suffering the same fate.”
The company’s phone at its headquarters in Monessen had
been disconnected at press time. The company’s website had been removed,
and company officials could not be reached for comment.