#USA #Houston #Platinum Equity #Sterling Group #Tangent Technologies

Sterling Group's Strategic Sale of Tangent Technologies

The Sterling Group has announced the completion of a deal to sell Tangent Technologies, a prominent manufacturer of high-performance synthetic materials, to Platinum Equity. This significant transaction is poised to close in the third quarter of 2026, representing a pivotal moment for both companies involved.

Tangent Technologies, based in Aurora, Illinois, specializes in creating materials that are gaining traction as alternatives to conventional building supplies. Their products, which are particularly favored for outdoor living, site amenities, structural applications, and marine decking, are recognized for their durability, aesthetic appeal, and low maintenance needs.

A Focus on Sustainability

One of the defining features of Tangent's products is their commitment to sustainability. The company manufactures its offerings using a combination of post-consumer and post-industrial recycled feedstock, thereby contributing positively to environmental conservation efforts.

Since establishing a partnership with Tangent's founders in 2018, The Sterling Group has aimed to accelerate the company's impressive track record in the synthetic materials industry. The focus of this partnership was not just financial; it involved enhancing innovation and ensuring exceptional customer service. Throughout Sterling's ownership, Tangent has seen remarkable growth, expanding its clientele and tripling its size in terms of market reach.

The Role of Leadership

John Griffin, a partner at The Sterling Group, played a hands-on role during this period of growth. He spent a year embedded within Tangent to provide direct support to the management team as they implemented various growth initiatives. Griffin expressed gratitude toward Tangent's founders, Guy DeFeo, Andy Stephens, and Pancho Morales, for their faith in Sterling as a partner. He highlighted the capabilities of Tangent’s management team, headed by CEO Kevin Potthoff and President/CFO Brad Huffman, and voiced confidence in their ability to achieve further milestones under Platinum Equity’s stewardship.

Industry Perspectives

The transaction reflects a strategic move within the private equity landscape, where companies are increasingly recognizing the value of synthetic materials. As industries pivot toward sustainable solutions, the demand for high-quality synthetic options is likely to continue its upward trajectory.

Moelis and Lincoln acted as financial advisors for the transaction, while McDermott Will & Emery served as legal advisor to Tangent Technologies.

About The Sterling Group

Founded in 1982, The Sterling Group is renowned for its focus on private equity and credit investments within the realms of basic manufacturing, distribution, and industrial services. With a history of successfully sponsoring numerous platform companies, Sterling has accumulated over $27 billion in total transaction value and manages approximately $9 billion in assets. More details about their operations can be found at www.sterling-group.com.

In conclusion, this sale not only exemplifies Sterling’s recognized prowess in the investment landscape but also highlights the growing significance of sustainable materials in the modern marketplace. As Tangent Technologies looks ahead, the partnership with Platinum Equity promises new growth opportunities and continued commitment to innovation in the synthetic materials industry.