Morgan Wood Products has been acquired by EP Group (“EPG”), a Charleston, South Carolina-based family-owned operating group. Morgan Wood Products is a pallet brokerage firm based in Columbus, Ohio. Its market area currently covers 41 states and Canadian provinces.
The COVID crisis fundamentally altered the pallet industry, and Morgan Wood was well-positioned to expand its operations due to the market shift. By 2022 the company had reached the stage where its owner and founder, Luke Reinstetle, saw the benefit of bringing in outside capital and resources to keep its growth moving ahead. Following the transaction, Reinstetle will retain his role as CEO at the company as it seeks to explore new markets and seize fresh commercial opportunities.
Given its long-term focus on investing, Morgan Woods’ economic resiliency and competitive advantages were highly attractive to the EP Group. With the founder seeking to stay on and continue to run the business for the foreseeable future, EP Group provided the ideal value addition he was seeking.
Managing the complexity of selling a pallet business
“My thanks to the Benchmark International team,” Reinstetle commented. “The process was far more complex than I ever thought it could be. They were right there every step of the way, not only handling the issues but also walking me through the key points so that I could make the best decision for my employees, family, and customers.”
Benchmark International ran an exhaustive process, reaching out to over 560 potential acquirers. EP Group quickly stemergeds an experienced, highly-motivated, founder-focused potential acquirer that would fit well with Benchmark’s client. “The market response was very interesting here,” reflected Chirag Patel, the Benchmark International Senior Associate who oversaw the bidding process.
“We had a client who successfully navigated the pandemic and post-pandemic turbulence in the logistics markets to grow and strengthen his company. While many potential acquirers attempted to exploit the recency of the company’s resulting growth, the EP Group took the time to dig in and understand the permanency of those changes before taking a position,” he added.
EPG noted that Morgan Wood Products has built a reputation for providing top-notch products with dynamic and competitive pricing thanks to its extensive network of trusted partner sawmills. With this solid foundation, Morgan Wood Products sees great potential for further growth and views the partnership with EPG as a crucial opportunity to expand its horizons, utilizing EPG’s operational and capital resources.
Reflecting on his decision to join forces with EPG, Reinstetle expressed, “Our family culture and history is important to me and something I was looking for in a partner. The people at EPG reminded me a lot of our own team. I am looking forward to accelerating the growth of the company with the combination of skills and resources from both of our teams.”
Terry Hurley, EPG’s President, and CEO shared his enthusiasm, stating, “We are pleased to add Morgan Wood to our portfolio of companies. Luke and his team have built a vibrant business that is ready to grow and expand, and we are excited to move into the future together.”
Under the Morgan Wood Products brand, the Company will continue to operate independently, while leveraging the support and synergies from its partnership with EPG.
EPG, based in Charleston, South Carolina, has a rich history of successful acquisitions since its first venture in 1896. Over the years, it has operated and acquired numerous thriving businesses across different sectors throughout the country. With a track record of more than 20 acquisitions since 2014, EPG remains an active acquirer, continuously adding to its portfolio of operating companies to create diversified revenue streams.
Williams Mullen served as EPG’s legal advisor for this transaction.
About Morgan Wood Products
Morgan Wood Products, a leader in the wood pallet industry, has been providing top-quality wood products and excellent customer service throughout the United States and Canada. Since its establishment in 2002, the company has remained family-owned and operated, boasting a management team with over 50 years of collective industry experience.
Dinsmore acted as the Company’s legal advisor for this transaction.