Epsilyte Holdings LLC, a leading provider of expandable polystyrene (EPS), services, and solutions has acquired Polysource Inc., a leading producer of compounded EPS and molded products used in building insulation, personal safety equipment, and filtration media. Epsilyte is owned by Balmoral Funds and management.
With the acquisition of Polysource, Epsilyte will operate two distinct business units: "EPS," largely made up of the heritage Epsilyte business, and the newly formed "Compounded EPS" unit, which is mostly comprised of the heritage Polysource business based in Piqua, OH with approximately 90 associates. Polysource currently sells compounded EPS and molded products to customers in over 15 countries.
"We are thrilled to complete this acquisition and we welcome the Polysource associates to the Epsilyte team," said Brad Crocker, President and Chief Executive Officer, of Epsilyte. "EPS is already a key enabler of carbon neutrality due to its almost unmatched insulative properties. This acquisition further strengthens our ability to enhance performance of our products through Polysource’s unique and efficient extrusion technology enabling us to better serve customers with more sustainable products and true value creation." As part of the transaction, Erik Wehtje, founding partner and Chairman of Polysource, will continue to advise in both technical and commercial areas. "Erik is truly an expert in the development, production, and marketing of compounded EPS resin on a global basis and I’m pleased to retain his knowledge and counsel as we move forward as a combined company," said Brad Crocker.
According to David Shainberg of Balmoral Funds, "This acquisition enables Epsilyte to leverage its resources to continue improving its business and expanding its product portfolio. We are excited about the prospects of the Compounded EPS business unit."
Epsilyte also announced that Matthew Cox will lead the Compounded EPS business. Mr. Cox will join the Epsilyte leadership team reporting to Brad Crocker. Mr. Cox joined Polysource in May 2017 as President and CEO after spending almost twenty years in various banking and finance leadership roles. "Mr. Cox has been instrumental in developing both processes and markets while at Polysource and has the drive, experience, technical skills and leadership qualities needed to fully maximize the value we expect from this new business," Mr. Crocker said. "Epsilyte brings the critical mass, functional competence and technical capabilities we needed to advance our business to the next level," said Mr. Cox.
Details of the transaction were not announced.
Epsilyte is one of North America’s leading producers of expandable polystyrene resin. We are a company of scale focused on solving customer needs for efficient, high-R value EPS. This includes reducing energy usage in buildings, ensuring safe and healthy food through innovative packaging technology, and participating in infrastructure investment both in the United States and abroad. Epsilyte is a portfolio company of Balmoral Funds LLC. For more information please visit www.epsilyte.com.
About Balmoral Funds
Balmoral is a Los Angeles, CA based private equity fund, founded in 2005, with approximately $500 million of assets under management. Balmoral partners with talented, aligned and committed management teams to invest in and revitalize companies. Balmoral typically invests in companies that have revenues between $30 to $500 million and require equity investments of $10 to $60 million. For more information please visit: www.balmoralfunds.com.
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