Generational Equity Advises Martin Pallet in its Sale to Burlington Capital Partners

By Generational Group

03/15/2023

Generational Equity, a leading mergers and acquisitions advisor for privately held businesses, is pleased to announce the sale of its client Martin Pallet, Inc. to Burlington Capital Partners LLC. The transaction closed February 28, 2023. The transaction was completed in partnership with Martin Pallet’s management and Farragut Capital Partners.

Located in Massillon, Ohio, Martin Pallet, Inc. (MPI) manufactures pallets, crates, and wood packaging products. Specifically, the Company produces a wide range of recycled pallets, new pallets, custom pallets, crates, as well as lumber and wood packaging materials. In addition, through related entities, MPI provides transportation, truck repair, and other complementary services. MPI is well known in the regional market and has an excellent reputation for the breadth of products offered, customer service, technical knowledge, and the timely delivery of products.

Burlington Capital Partners (BCP), headquartered in Chicago, Illinois, with an additional office in Cleveland, Ohio, invests in family and founder-owned, lower middle market companies. BCP serves business owners in food and other mission-critical industries. They are equity investors that help lower middle market companies reach their potential. The Firm loves food and other businesses with strong repeat purchase dynamics run by great people who have an aligned vision for growth, integrity, and community.

The investment will enable Martin Pallet to pursue growth initiatives and add-on acquisitions while providing liquidity to the owners. Richard Miller, co-owner and current CEO, will continue to lead sales and business development, and BCP partner Tim Novak will assume a CEO role designed to drive operational efficiencies.

BCP, led by partners Michael Baldwin and Tim Novak, effected a unique buyout intended to preserve Martin Pallet’s culture while providing institutional capital and expertise. “We are very excited to partner with a wonderful ownership group that has been committed to a culture of quality, customer service, and employee satisfaction for over 20 years,” said Mr. Novak.

“BCP is honored to partner with such a mission-critical company and is excited to invest behind the key BCP themes of critical supply chain inputs and industry fragmentation,” said Mr. Baldwin. “Pallets physically carry 80% of US commerce and Martin Pallet’s flexibility with sizing, order quantities, and speed to delivery positions it well to support business customers within its serviceable radius.”

Farragut Capital Partners, located in Chevy Chase, Maryland, provided both debt financing and an equity co-investment in support of the transaction. Alan Cuthbertson of Farragut said of the transaction: “Martin Pallet is a leader in its market, serving a critical role in its customers’ supply chains. We’re excited to partner with BCP and the leadership team in capitalizing on the many opportunities ahead for growth and value creation.”

Generational Equity Executive Managing Director of M&A – Central Region, Michael Goss, and his team, led by Senior Managing Director M&A, Doug Smith, with the support of Managing Director, M&A, Ryan Johnson, successfully closed the deal. 

“We expect this partnership to enhance the growth and legacy of the company going forward,” said Smith.