Burlington Capital Partners acquires Martin Pallet

Private equity firm Burlington Capital Partners (BCP), an investor in lower middle-market food and manufacturing businesses, has acquired Martin Pallet. The transaction was completed in partnership with Martin Pallet’s management and Farragut Capital Partners.

Founded in 1985 and headquartered in Massillon, Ohio, Martin Pallet manufactures and refurbishes specialty wood pallets and crates for a diverse base of longstanding business customers across Ohio and Pennsylvania. Martin Pallet is a critical supply chain vendor specializing in custom-sized pallets and crates which maximize warehouse and shipping space for customers, BCP added.

The investment will enable Martin Pallet to pursue growth initiatives and add-on acquisitions while providing liquidity to the owners, according to BCP. 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 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 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 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.”