PLATINUM EQUITY PORTFOLIO COMPANY HC COMPANIES ACQUIRES CLASSIC HOME & GARDEN

Complementary acquisition brings together leaders in functional pots and decorative containers to create "one stop shop" for horticulture growers, retailers and distributors

LOS ANGELES, May 28, 2024 /PRNewswire/ -- The HC Companies, a leading North American manufacturer of horticultural containers, announced today the acquisition of Classic Home & Garden (CHG), a premier provider of decorative and functional products for the lawn and garden market in North America. Financial terms were not disclosed.

Headquartered in Shelton, CT, CHG designs, sources and sells decorative garden pots and an array of backyard décor products. In recent years CHG has introduced new product lines focused on water conservation, eco-friendly products and packaging, and optimized transport.

The HC Companies CEO Bob Mayer said CHG's strength in decorative containers fits seamlessly with HC's focus on functional grower products.

"This is a strategic and highly complementary combination of two companies that each have their own distinct value propositions," said Mayer. "There is little overlap between the two and joining forces will create new opportunities for both businesses through cross-selling, production and distribution efficiencies, customer acquisition, channel penetration and product innovation. We are creating a 'one stop shop' that can simplify the value chain and streamline procurement and retail merchandising for our partners. We believe that is great news for growers, retailers, distributors and employees alike."

CHG owner and CEO Fred Ryan will remain a significant investor in the combined business and will serve as President.

"I'm proud of the CHG team and the contributions they have made to the success of our business over the years," Ryan said. "Our growth has been driven by a culture of innovation, design and unwavering commitment to quality and customer service. Those core values will continue to guide us as we step onto a larger stage with greater opportunity to expand our reach and our impact."

Platinum Equity acquired HC in 2023 and the investment is led by the firm's Small Cap team.

"When we acquired HC Companies we set out to create a best-in-class, diversified player of scale within the broader horticultural market," said Platinum Equity Partner Jacob Kotzubei and Managing Director Nick Fries in a joint statement. "HC's transformational acquisition of CHG is an exciting and important step in that process. We will continue to work with Bob and Fred to evaluate additional strategic M&A opportunities across the lawn and garden market."

Willkie Farr & Gallagher LLP served as legal counsel and Alston & Bird LLP served as financing counsel to HC Companies on the CHG acquisition. Stout served as financial advisor to HC Companies.

Berkowitz, Trager & Trager, LLC and Locke Lord LLP served as legal counsels to CHG. Piper Sandler Companies served as CHG's sell-side financial advisor.

About The HC Companies, Inc.
The HC Companies is a proud culmination of many legacy brands and continues to transform the horticultural industry through bold leadership, innovative manufacturing, and a comprehensive portfolio of products ideal for greenhouse, nursery, retail, and commercial markets. Headquartered in Twinsburg, Ohio, with production and distribution facilities throughout North America, HC manufactures growing solutions using the latest technologies and materials to satisfy the challenges of a continuously evolving industry. In addition to their horticultural containers, HC also supports a full line of sustainably sourced solutions including protective packaging, consumer products, growing containers, and more. For information on The HC Companies, visit hc-companies.com (growing containers) or hc-sustainable.com (sustainable products).

About Classic Home & Garden
Classic Home & Garden (CHG) is a leading provider of decorative planters and pots to national retailers, distributors, florists and garden centers across North America. Headquartered in Shelton, Connecticut, CHG's entrepreneurial and talented team continuously innovates and challenges the status quo to provide exceptional products and service to customers. CHG supports a comprehensive line of planters in a variety of materials, along with a wide assortment of garden décor to create inspiring and impactful indoor and outdoor living spaces. Through strong relationships with breeders and growers, CHG has cultivated a deep market expertise to develop more functional, aesthetically pleasing products that better match consumer needs. For more information on CHG, visit classichomeandgarden.com.

About Platinum Equity
Founded in 1995 by Tom Gores, Platinum Equity is a global investment firm with more than $48 billion of assets under management and a portfolio of approximately 50 operating companies that serve customers around the world. Platinum Equity specializes in mergers, acquisitions and operations – a trademarked strategy it calls M&A&O^® – acquiring and operating companies in a broad range of business markets, including manufacturing, distribution, transportation and logistics, equipment rental, metals services, media and entertainment, technology, telecommunications and other industries. Over the past 28 years Platinum Equity has completed more than 450 acquisitions.

Contacts:

Dan Whelan
Platinum Equity
[email protected]

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SOURCE Platinum Equity