MINNEAPOLIS--(BUSINESS WIRE)--July 11, 2005--Private equity firm Norwest Equity Partners ("NEP") announced today the sale of its portfolio company Norwesco, Inc. ("Norwesco" or "the Company"), a leading manufacturer of plastic agricultural and septic tanks, to Allied Capital Corporation ("Allied Capital"). Allied Capital (NYSE:ALD), a leading business development company, purchased Norwesco for $160 million. The transaction closed on July 8, 2005.
NEP and Florida-based private equity firm Brockway Moran & Partners in partnership with management initially invested in Norwesco in October 1998. Since then, the Company has demonstrated consistent profitable growth reaching nearly $70 million in sales in 2004. Moreover, Norwesco has continued to maintain its market dominance through its leading market share position. In December 2004, Norwesco completed a recapitalization providing distribution proceeds to the Company's shareholders as well as funding for its continued growth initiatives.
Erik Torgerson, NEP general partner and Norwesco board member, said, "The tremendous performance Norwesco has shown is a direct result of the talents and leadership of CEO Tom Smith and his management team. NEP feels privileged to have worked with them over the past six years."
Founded in 1939, St. Bonifacius, Minnesota-based Norwesco is the largest manufacturer and supplier of polyethylene tanks and the fourth largest plastics rotational molder in North America. With 14 plants currently in operation, the Company designs, manufacturers, and markets a broad assortment of polyethylene tanks primarily to the agricultural and septic tank markets. Norwesco also sells a line of valves, couplers, and adapters for use with its tanks.
Add-on acquisitions and geographic expansion have been the primary growth drivers for Norwesco during the NEP and Brockway Moran & Partners investment period. Canada-based Parkland Plastics, a manufacturer of tank and other containers focused on the agricultural markets, joined Norwesco in November 2003, and NORTCO Plastics Inc., Western Canada's leading manufacturer of polyethylene tanks, joined in January 2000. The Company also acquired three of Raven Industries' polyethylene tank manufacturing plants in South Dakota, Ohio https://drive.google.com/file/d/0Bwq31542MfibZ2JBVjVRUHE2bEE/view?usp=sharing