Representative Exit
About the Investment
Since its founding in St. Paul, Minnesota in 1939, Norwesco has been North America’s leading manufacturer of proprietary, rotationally-molded polyethylene tanks for agricultural, water, closed-top industrial and below ground septic and cistern applications. Norwesco was initially named Northwest Plastics but changed its name in 1973 to Norwesco. At the time of the name change, Norwesco was ranked as one of the oldest and largest plastic processors in the United States.
In 1988, the company, which had been public since the late 1950s, was taken private by management shareholders and private equity investors, including NEP, in a leveraged buyout transaction. In 1992, NEP, as the majority shareholder, sought liquidity for its investment through the sale of the company to Trivest, a private equity firm.
Six years later in 1998, NEP again purchased Norwesco from Trivest in a privately-negotiated, non-auction management buyout. Over the course of its second-round investment, NEP helped to identify and successfully close five additional add-on acquisitions for Norwesco. The company significantly expanded its geographic presence through the addition of facilities throughout the United States and Canada.
Execution of the company’s strategy resulted in strong earnings growth during the life of NEP’s investment and an exit multiple of over three times greater than the initial purchase price. Norwesco was sold to Allied Capital Corporation in July 2005. As the fifth largest rotational molder in North America with 15 plants in operation, Norwesco continues to maintain its position as the industry leader in the polyethylene tank market.
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Investment Date
January 2005
October 1998
Add-On Activity
- Parkland Plastics (November 2003)
- Raven Industries – three polyethylene tank mfg plants (August 2000)
- NORTCO Plastics (January 2000)
- Quadel Industries – water/septic business (September 1999)
- Septics Unlimited (August 1999)
