TUSCALOOSA, Ala. & MIAMI, July 16, 2024-Hinton Lumber Products has announced a minority growth investment from Trivest Partners. The investment was made from Trivest Growth Investment Fund II (“TGIF”), a dedicated non-control fund launched in 2016 to solve founders’ need for a value-added capital partner while maintaining operational and financial control of their business. Palmares Capital Partners (“Palmares”), an Atlanta-based private investment firm, co-invested in Hinton alongside Trivest.
Hinton Lumber’s need for a value-added capital partner while maintaining control
Based in Tuscaloosa, AL, Hinton is one of the largest manufacturers of wooden pallets in the United States and supplies a wide range of pallets, including block pallets, CP pallets, and stringer pallets. Founded in 1973 by the Hinton family, the Company has evolved over the past five decades from a manufacturer of hand-crafted wooden boxes and crates to a fully automated manufacturer of custom-designed pallets. In addition to Tuscaloosa, the Company has operations in La Porte, TX, and serves customers across the Southern United States.
“The partnership with Trivest marks a new chapter in our business, and we eagerly anticipate seizing new avenues for growth both organically and through M&A,” said Larry Howell, President of Hinton.
“I am thrilled to announce a strategic investment from Trivest Partners, a major milestone for our organization that will shape our future. For over 50 years, we have provided our customers with exceptional value through sustainable packaging solutions,” said Hinton Howell, COO of Hinton. “As the leader in automation within our industry, we will drive continued growth and success guided by the expertise of the Trivest team. We are extremely excited for the future and the opportunities this collaboration brings.”
“Palmares invests in companies with a competitive moat in a growing industry, a winning and honest culture, and systems and processes that provide better efficiency and decision-making. Hinton checked all those boxes,” said Andy Mason, Partner at Palmares. “Palmares teamed up with Trivest for the investment in Hinton as we felt Trivest’s deep resources provided the best partnership for Larry and Hinton’s aspirational vision for the Company.”
“We are beyond excited to be partnering with Larry and Hinton, both well-known and respected leaders in the industry,” said Arturas Rainys, Principal at Trivest. “They have done an impressive job creating one of the best pallet manufacturers in the United States, and we are looking forward to supporting the Company’s next phase of growth.”
Related: Pallet Company Merger and Acquisition Tracker
Hinton Lumber: strategic transition to automated, high-quality production
Hinton Lumber Products has strategically evolved over the decades, adapting to industry changes and market demands. Initially, the company focused on producing ammunition boxes in the 1960s, shifting to windshield crating in the 1970s and 1980s. It wasn’t until 1998 that they ventured into pallet manufacturing, starting with a Viking Unimatic and eventually transitioning to plywood block beer pallets. By the early 2000s, stringer pallets became their primary product.
In recent years, Hinton Lumber has embraced automation to meet the increasing demand for high-quality, standardized products. The La Porte facility, a top manufacturing plant in the U.S., epitomizes this shift. It employs three CAPE Tandem nailing lines equipped with robotics, designed to produce both block and stringer pallets with precision. This high-production, high-quality focus ensures consistent standards and tight tolerances required by their clients in the rental and petrochemical industries.
In a 2023 Pallet Enterprise article, Larry and Hinton Howell emphasized the importance of automation in their operations. They believe that companies must choose between highly automated, specialized production or custom-built designs for niche customers in the U.S. market. The La Porte facility exemplifies the former, focusing on efficiency and specialization.
The facility’s design and operations draw inspiration from European models, where precut lumber is a standard practice. By sourcing precut lumber from both domestic and international suppliers, including South America, the La Porte plant minimizes waste and maximizes efficiency. This strategy reflects a broader industry trend toward locating manufacturing facilities closer to customer bases to reduce logistics costs.
While the Alabama facility operates a resaw operation and automated pallet nailing, embodying vertical integration, the La Porte plant specializes in pallet assembly from precut lumber. This dual approach allows the Howell brothers to leverage the strengths of both models. They maintain a diverse supply mix to navigate fluctuations in the U.S. lumber market, sourcing from international suppliers and developing networks in Brazil and Argentina.
The La Porte facility, opened in 2020, was specifically designed to produce petrochemical pallets and block rental pallets, diversifying Hinton Lumber’s customer base. This strategic diversification and emphasis on automation and efficiency have positioned Hinton Lumber as a leader in the pallet manufacturing industry, capable of handling complex designs and meeting the stringent demands of its clients.
About Hinton Lumber
Hinton manufactures custom-designed wooden pallets for customers across a myriad of industries. The company operates out of facilities in Tuscaloosa, AL and La Porte, TX. For more information, visit www.hintonlumber.com
About Trivest
Trivest Partners, headquartered in Miami, with a presence in Charlotte, Chicago, Denver, Los Angeles, New York, and Toronto, is a private investment firm that focuses exclusively on the support and growth of founder-led and family-owned businesses in the United States and Canada in both control and non-control transactions. For more information, visit www.trivest.com
About Palmares
Palmares Capital Partners is a private investment firm seeking to make non-control equity investments in family and founder-owned companies by partnering with business owners to fund growth initiatives and facilitate shareholder liquidity. For more information, visit www.palmarescapital.com
Rick LeBlanc, EMBA, is the founder and editor of Reusable Packaging News (subscribe to the free newsletter) and editor of Western Pallet Magazine. A supply chain journalist with more than 30 years of experience, he specializes in pallets, reusable packaging, material handling and related operations. Rick is co-author of Pallets: A North American Perspective and Pallets & Progress: A Collected History of Pallets and Palletized Handling 1922–1945. He is also an advisory board member of the Virginia Tech Center for Packaging and Unit Load Design. Read Rick’s full bio.
