August 11, 2021
Chicago, Illinois and Toronto, Ontario – Wind Point Partners (“Wind Point”), a Chicago-based private equity firm, and Ontario Teachers’ Pension Plan Board (“Ontario Teachers’”), Canada's largest single-profession pension plan, announced today they have sold Aurora Plastics (“Aurora” or the “Company”), a leader in polyvinyl chloride (“PVC”) compounds, to Nautic Partners (“Nautic”).
Based in Streetsboro, Ohio, Aurora is a leading provider of specialty materials solutions, including specialty flexible and rigid PVC, thermoplastic elastomers, and other engineered materials. Aurora’s highly technical products primarily serve the building & construction, industrial and consumer end-markets. The Company’s commitment to providing innovative and high-quality products as well as technical service to its customers differentiates Aurora as a value-add solutions provider within the industry.
Wind Point and Ontario Teachers’ acquired Aurora in August 2016 in partnership with veteran specialty materials executive Darrell Hughes, who joined the Company as Chief Executive Officer. Mr. Hughes was instrumental in expanding the depth of Aurora’s management team across numerous functions including sales & marketing, operations, research & development and human resources. During Wind Point and Ontario Teachers’ ownership and under Mr. Hughes’ leadership, Aurora’s growth was rapidly accelerated through the execution of a multi-pronged strategy focused on organic growth and strategic acquisitions.
“Aurora is a great example of how Wind Point’s focus on partnering with a top caliber CEO and building a world-class management team can drive tremendous value for our investors,” commented Nathan Brown, Managing Director at Wind Point. “Aurora has built a powerful, differentiated business model, and the Company’s success would not have been possible without the leadership of Darrell and his team, who executed on every aspect of our transformative value creation plan. We wish them continued success in their new partnership with Nautic.”
“Today’s sale is the culmination of a highly successful partnership with Wind Point, which has seen Aurora establish itself as a leading North American provider of custom material solutions. We believe this transaction is a great outcome for all parties, and we look forward to continuing to watch Aurora thrive under its new owners,” said Karen Frank, Senior Managing Director, Equities at Ontario Teachers’.
Wind Point and Ontario Teachers’ value creation plan for Aurora was developed around the goal of building a world-class North American specialty materials compounder. During their ownership, volumes more than doubled, new products and capabilities were introduced, and Aurora expanded its geographic presence through the addition of three facilities located in Quebec, Massachusetts, and Texas.
Darrell Hughes, CEO of Aurora Plastics, noted, “I want to thank Wind Point, Ontario Teachers’ and our board for their outstanding support over the last five years. Our partnership has successfully built a truly market-leading, scalable organization that continues to deliver on a proven playbook for serving our customers, employees, and all stakeholders. We very much look forward to continuing our exciting momentum with Nautic as a partner.”
Chris Pierce, Managing Director with Nautic, stated, “Aurora is a market leader with an outstanding management team. Their history of successfully completing acquisitions and commitment to continuous innovation position the business well for continued growth. We are delighted to partner with Darrell and his team for the next chapter of Aurora’s growth.”
William Blair & Co. and Barclays acted as financial advisors to Aurora Plastics, while Reed Smith served as legal counsel to the Company. Ernst & Young provided financial due diligence support. McDermott Will & Emery served as legal counsel to Nautic Partners.
About Aurora Plastics
Founded in 1997 and headquartered in Streetsboro, Ohio, Aurora Plastics is known for providing high-quality polymers, industry-leading service, and customized solutions. The company offers a broad range of products, all delivered with special attention to consistency and reliability and designed to meet specific customer needs through a collective exchange. In addition to their Streetsboro production facility, the company has manufacturing capabilities throughout the U.S. and Canada: North Carolina, Quebec, Massachusetts, and Texas.
Additional information about Aurora Plastics is available at www.auroraplastics.com.
About Wind Point Partners
Wind Point Partners is a Chicago-based private equity investment firm with approximately $4 billion in assets under management. Wind Point focuses on partnering with top caliber management teams to acquire well-positioned middle market businesses where it can establish a clear path to value creation. The firm targets investments in the consumer products, industrial products, and business services sectors. Wind Point is currently investing out of Wind Point Partners IX, a $1.5 billion fund that was initiated in 2019.
Additional information about Wind Point Partners is available at www.windpointpartners.com.
About Ontario Teachers’ Pension Plan Board
Ontario Teachers' Pension Plan Board (Ontario Teachers') is the administrator of Canada's largest single-profession pension plan, with C$221.2 billion in net assets (all figures at December 31, 2020). It holds a diverse global portfolio of assets, approximately 80% of which is managed in-house, and has earned an annual total-fund net return of 9.6% since the plan's founding in 1990. Ontario Teachers' is an independent organization headquartered in Toronto. Its Asia-Pacific region offices are located in Hong Kong and Singapore, and its Europe, Middle East & Africa region office is in London. The defined-benefit plan, which is fully funded, invests and administers the pensions of the province of Ontario's 331,000 active and retired teachers. For more information, visit otpp.com and follow us on Twitter @OtppInfo.
Wind Point Partners
Ron Liberman, Wind Point Partners
Phone: (416) 419-1437