May 10 2007
Private equity firm Woodside Capital announced today that it has completed the acquisition of Rehrig International and United Steel & Wire, both strong competitors in the manufacturing of shopping carts and other material handling equipment for retailers. The combined company, known as Rehrig United International, will become a significantly stronger competitor in the shopping cart and material handling marketplace. The combination of specific competencies and products creates a single supplier that can provide retailers with the broadest product line: including plastic or wire cart baskets and chromed or powder coated chassis. Rehrig United will be headquartered in Richmond, VA with manufacturing locations in Virginia and Battle Creek, Michigan.
"The creation of Rehrig United, through the combination of two highly complementary stand-alone businesses, results in a powerful market leader in the shopping cart and material handling space. The market continues to demand a wide variety of basket and chassis materials. The combination of Rehrig and United will provide a solution to these demands, all from one supplier," said Vincent R. Gurzo, President and Chief Executive Officer. "By combining these companies we'll offer the market the broadest product mix in the industry from more production locations than any other supplier. Whether our customers' preference is plastic or wire basket, nickel-chrome or powder coated chassis, we can meet their needs."
Benjamin Procter, a Partner at Woodside Capital remarked, "Woodside is very excited by the opportunity to invest in Rehrig United. It is an example of how we effectively utilize the wide range of investing skills within our organization. From debt underwriting to full operational deal sponsorship, we can provide capital and ownership transition solutions to complex, special situations."
"As stand alone entities Rehrig International and United were solid, but underperforming, competitors in this industry. As a combined platform, Rehrig United creates an attractive investment due to a significantly improved competitive position and cost structure. We're excited about the future of the combined business, and look forward to partnering with this outstanding management team in this endeavor."