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HEARTWOOD PARTNERS SIGNS AGREEMENT TO SELL UW SOLUTIONS

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Heartwood Partners has announced the signing of a definitive agreement to sell UW Solutions to Apogee Enterprises, Inc. (Nasdaq: APOG) for $240 million. The transaction is expected to close in the fourth quarter of 2024. UW Solutions, headquartered in Louisville, KY, is a leading manufacturer of advanced surface coated products used in graphics and warehouse mezzanine decking applications.

Under Heartwood Partners' ownership, UW Solutions expanded its management team, invested in infrastructure, and acquired RDC Coatings®, becoming a vertically integrated coatings manufacturer. The sale represents the third exit for Heartwood Partners' Fund III and showcases their lower-leverage, current cash yield model's success in delivering returns for investors.

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Positive

  • Sale of UW Solutions to Apogee Enterprises for $240 million
  • Successful growth and expansion of UW Solutions under Heartwood Partners' ownership
  • Acquisition of RDC Coatings® transformed UW into a vertically integrated coatings manufacturer
  • Third successful exit for Heartwood Partners' Fund III

Negative

  • None.

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NORWALK, Conn., Sept. 25, 2024 /PRNewswire/ -- Heartwood Partners® is pleased to announce that on September 23, 2024, Heartwood Partners III, LP ("Fund III") and affiliated entities signed a definitive agreement to sell their investment in UW Solutions ("UW", or the "Company") (www.uwsolutions.com) to Apogee Enterprises, Inc. (Nasdaq: APOG) ("Apogee") in a transaction valued at $240 million. The transaction is expected to close later in the fourth quarter subject to satisfaction of customary closing conditions.

Heartwood is proud of the partnership with UW and the successful outcome that we were able to realize for our investors.

Headquartered in Louisville, KY, UW Solutions is a leading manufacturer of advanced surface coated products used in graphics and warehouse mezzanine decking applications. Through years of research, development, and innovation, the Company has created best-in-class solutions across several key business segments including HD printable materials (ChromaLuxe® and Unisub® brands), industrial flooring systems (ResinDek®), and Engineered coatings (R&D Coatings®).

Under Heartwood Partners' ownership, UW built out a top-tier management team and successfully grew the business by investing in people, systems, and a second state-of-the-art manufacturing facility. Additionally, the Company completed the acquisition of RDC Coatings®, which transformed UW into a vertically integrated coatings manufacturer.

UW Solutions CEO, Devlin Riley¹, commented "Heartwood Partners' willingness to invest in people and importantly fully leverage its internal value creation specialist team and playbook led to this outcome. The strength and stability of their unique lower-debt structure has allowed UW to grow into a world-class provider of coating solutions. We are excited to partner with Apogee for the next chapter of UW's growth story."

Demetrios Dounis, Managing Partner at Heartwood Partners stated: "We are proud of our partnership with UW Solutions and the successful outcome that we were able to realize for our investors. This represents the third exit for Fund III and another example of how our current cash-yield and lower leverage model can deliver real wins in any deal market environment. It has been a pleasure partnering with management to transform and grow the business. We look forward to watching the business continue its growth trajectory as part of Apogee."

Finn Dixon & Herling LLP served as legal advisor and Harris Williams served as financial adviser to UW Solutions and its investors.

Heartwood Partners, a middle market private equity firm founded in 1982, is differentiated by a unique lower-leverage, current cash yield approach designed to create partnership with continuing management. Our approach combines a conservative capital structure with strategic execution to support long-term growth, including organic and acquisition-driven expansion into new products, services, and end markets. In addition, we support each management team with our in-house Value Creation Specialists who provide deep, subject-matter expertise in strategic areas such as eCommerce and digital marketing, human capital and organizational design, and IT improvement and acquisition integration. We currently manage over $1.4 billion in investments and commitments as of 12/31/23, and our principals have invested in more than 100 platform and add-on acquisitions. Heartwood is currently investing from Heartwood Partners IV, LP, and is focused on founder, family and management-held businesses serving the niche manufacturing, specialty chemicals, food, agriculture, packaging, and industrial & consumer services markets. For additional information about Heartwood, please visit www.heartwoodpartners.com.

¹Mr. Devlin Riley is not a client or investor of Heartwood Partners, nor was he compensated for his statements herein.

CONTACT:

Name: Michelle Ryan 


Email: mryan@heartwoodpartners.com 


Phone: 203-945-0432

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SOURCE Heartwood Partners

FAQ

What is the value of the UW Solutions sale to Apogee Enterprises (APOG)?

The transaction is valued at $240 million.

When is the UW Solutions sale to Apogee (APOG) expected to close?

The sale is expected to close later in the fourth quarter of 2024, subject to customary closing conditions.

What are UW Solutions' main product lines?

UW Solutions' main product lines include ChromaLuxe® and Unisub® for HD printable materials, ResinDek® for industrial flooring systems, and R&D Coatings® for engineered coatings.

How did Heartwood Partners contribute to UW Solutions' growth?

Heartwood Partners helped build a top-tier management team, invested in people and systems, supported the opening of a second manufacturing facility, and facilitated the acquisition of RDC Coatings®.