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

The Sterling Group Completes Sale of Tangent Technologies

The Sterling Group, a private equity firm focused on middle-market companies, has successfully finalized the sale of Tangent Technologies to Platinum Equity. The deal marks a significant transaction in the synthetic materials sector, although financial specifics have not been disclosed.

About Tangent Technologies

Tangent Technologies, based in Aurora, Illinois, is a recognized leader in manufacturing advanced synthetic materials that are increasingly favored in various applications including outdoor living, structural projects, and marine decking. This company has carved out its niche over the years due to its products, which incorporate post-consumer and post-industrial recycled materials. These high-performance products are becoming popular alternatives to conventional building materials, owing to their durability, low maintenance requirements, and visually appealing design.

In 2018, the Sterling Group partnered with the founders of Tangent to continue its trajectory of innovation and stellar customer service in the synthetic material realm. Sterling's expertise in collaborating with family-owned businesses and its commitment to sharing success with employees played pivotal roles in the partnership.

Under Sterling's management, Tangent flourished, more than tripling its revenue and expanding its reach to new customer bases and market segments. This growth has exemplified the effectiveness of strategic investments in manufacturing and distribution sectors.

The Move to Platinum Equity

The acquisition by Platinum Equity is expected to further bolster Tangent’s capabilities and presence in the market. Platinum is well-known for identifying opportunities in companies that can turn around their operations and optimize growth potential. The acquisition signifies confidence in Tangent's robust business model, particularly in producing sustainable materials that align with current market trends toward environmental consciousness.

As the market for synthetic materials continues to evolve, this sale reflects a broader trend where private equity firms are investing heavily in companies that demonstrate potential for sustainable growth and innovation. With the increasing demand for environmentally friendly materials, Tangent is well-positioned to thrive under Platinum Equity's management.

The Role of Advisors

In facilitating this transaction, financial advisors Moelis & Company and Lincoln International played crucial roles. Additionally, McDermott Will & Emery served as legal counsel to Tangent. Their expertise was instrumental in navigating the complexities surrounding high-stakes acquisitions like this, ensuring that all parties understand the nuances and implications of the deal.

About The Sterling Group

Established in 1982, The Sterling Group has built a reputation for its investment strategies targeting basic manufacturing, distribution, and industrial service companies. With an impressive track record of overseeing the buyout of 78 platform companies and numerous additional acquisitions, Sterling collectively holds over $27 billion in transaction value and manages around $9 billion in assets.

The sale of Tangent Technologies serves as a testament to Sterling's successful investment philosophy and its capability to develop companies in their portfolio to achieve their full potential. Even as the firm moves on from Tangent, its legacy of innovation and growth in the synthetic materials market will undoubtedly persist.

Conclusion

The completion of Tangent's sale is a strategic move for both The Sterling Group and Platinum Equity, suggesting a promising future for Tangent Technologies as it continues to lead in sustainable synthetic materials production. This transaction reflects not only the successful journey of Tangent under Sterling’s stewardship but also the optimistic outlook for future endeavors post-acquisition.