ScaleCo Management, LLC, a Cleveland-based private investment firm, is pleased to announce its investment in and partnership with Innoplast, Inc., a vehicle and facility protection company, and Thermoprene, Inc., a customized manufacturer and supplier of plastic, rubber, aluminum, and other extrusions (collectively, “Innoplast”). This is ScaleCo’s 21st platform investment leveraging its thesis of engaging ambitious entrepreneurs to ignite growth and transform plateaued businesses. ScaleCo and Innoplast management have developed an investment thesis to grow Innoplast organically and make strategic investments in the traffic safety industry.
Operating for more than 15 years, Innoplast has developed a strong business model focused on bollard covers and other safety products. With the ScaleCo partnership, Innoplast will consolidate operations from three smaller facilities to one that is sufficiently sized and equipped with the resources to support future growth. Innoplast founders Craig and Lisa McConnell will retain significant ownership and will remain Chief Executive Officer and Vice President, respectively. ScaleCo and Innoplast have spent two years developing this partnership. The Charter Growth Capital Fund invested both equity and mezzanine debt to support the transaction and is excited to partner with ScaleCo and the founding team.
ScaleCo is pleased to announce that Gary Bowling, a ScaleCo Operating Partner, will be joining Innoplast as President. Bowling joined ScaleCo in 2020 with the goal of identifying a Northeast Ohio distribution company that he would invest in and manage. Bowling, ScaleCo, and the Innoplast team have already begun implementing the TAC Method, ScaleCo’s operational improvement process.
“Gary and I started talking about entrepreneurship through acquisitions during our children’s hockey games many years ago,” said ScaleCo founder, Brendan Anderson. “About 10 months ago, he decided to pursue this dream full time, jumping all-in with the process. Innoplast is a perfect match for Gary’s operations, and customer- and revenue-focused skill set. We couldn’t be happier with the developments leading up to this investment.”
Innoplast aligns well with ScaleCo’s strategy of investing in profitable, scalable distribution companies. The additional resources will enable Innoplast to focus on strategic growth by developing new products and through acquisition.
About Innoplast and Thermoprene
Innoplast was founded in 2006 as an affiliate of Thermoprene as a supplier of innovative products for vehicle and facility protection. For more information, visit www.innoplast.com. Thermoprene was founded in 1997 as a supplier of custom plastic, rubber, and aluminum extrusions. For more information, visit www.thermoprene.com. Both companies are based near Cleveland, OH.
About Charter Growth Capital Fund
Charter Growth Capital Fund invests $1 million to $5 million of junior capital (both debt and equity) in lower middle-market companies in the Great Lakes region to support growth or succession. Managed by principals of Charter Capital Partners, the team has 130+ years of collective experience; has managed a combined 19 funds; partnered with more than 100 companies; and invested more than $1.8 billion of capital including mezzanine debt, private equity and venture capital that has earned above market returns. For more information, visit chartergrowthcapital.com.
Senior Debt Provider: Ryan Schmitt and Maurus Kosco of First National Bank (www.fnb-corp.com)
Mezzanine Provider: Mike Palm and Hector Bultynck of Charter Growth Capital Fund (chartergrowthcapital.com)
ScaleCo Legal Advisor: Kate Hickner, Robert Lee, and Jack Diamond of Brennan, Manna & Diamond (www.bmdllc.com)
ScaleCo Accounting Advisor: Chuck Mullen and Toby Kaye of Apple Growth Partners (www.applegrowth.com)
Innoplast Legal Advisor: Christopher Hunt of Krugliak, Wilkins, Griffiths & Dougherty Co., LP (www.kwgd.com)
Charter Capital Legal Advisor: Spencer Layson, Loic Dimithe, and Dustin Daniels of Miller Johnson (www.millerjohnson.com)