Valesco Industries Infused Capital Into Five Lakes Manufacturing
Five Lakes Manufacturing, a renowned manufacturer of commercial and architectural wood doors based in Clinton Township, MI, has announced a significant growth strategy following an investment by Valesco Fund III and a partnership with Brookside Capital Partners.
The strategic plan focuses on expanding customer relationships and penetrating underserved geographic markets in the fragmented architectural wood door market. This ambitious approach is aimed at capitalising on Five Lakes' established national distribution network and strengthening its presence in the national building products market.
Key elements of the growth strategy include expanding ties with existing customers by utilising new manufacturing capabilities to meet stringent specifications and lead times. The company also aims to target underserved geographic markets to broaden its market presence beyond current locations.
Scaling operations is another crucial aspect of the strategy. Valesco and co-investor Brookside Capital Partners will provide patient capital and operational support to help Five Lakes maintain a competitive advantage.
Five Lakes' reputation for best-in-class architectural wood doors in diverse commercial applications such as education, hospitality, healthcare, and office markets will be leveraged to further enhance its market position.
The strategy is backed by senior financing from Comerica Bank, indicating a strong financial backing for growth initiatives.
Brown Gibbons Lang & Company Securities, LLC acted as the exclusive financial advisor to Five Lakes during the transaction. The transaction involved a majority recapitalization of Five Lakes' business, with equity and subordinated debt capital provided by Valesco and Brookside.
Valesco, known for achieving the best outcomes for businesses, existing owners, and themselves, is excited to collaborate with the selling shareholders to further enhance Five Lakes' position as a market leader.
The investment in Five Lakes Manufacturing marks Valesco Fund III's fifth platform investment. Valesco is actively seeking investment opportunities for Valesco Fund III, including control buyouts, recapitalizations, minority investments, management buyouts, and mezzanine financing.
Since its founding in 1994, Five Lakes has achieved significant growth in its custom and stock door lines, selling through a national distributor network with decades-long partnerships. Comerica Bank served as the senior lender for the transaction.
Valesco looks forward to working alongside Brookside and the management team to leverage Five Lakes' history, market position, and growth potential. This strategic partnership is expected to accelerate Five Lakes' footprint in the commercial and architectural wood door sector nationally.
To execute this growth strategy, Five Lakes Manufacturing intends to incorporate technology into its manufacturing processes to meet strict customer specifications quickly. Furthermore, they plan to utilize technology in market analysis to identify and penetrate underserved regions in the architectural wood door market, thereby expanding their market presence.
