48forty Solutions Announces Growth Equity Investment from Summit Partners
Alpharetta, GA and Boston, MA – 48forty Solutions, a leading national provider of recycled wood pallets and related total pallet management services, has announced that global growth equity investor Summit Partners has made a significant investment in the Company. Summit Partners joins existing investor Audax Private Equity as an equal partner in the business, with 48forty’s management team retaining meaningful ownership.
48forty is a leading national provider of end-to-end pallet management solutions – including supply, retrieval, on-site services, reverse logistics, and retail services – across the U.S. and Canada. The Company’s solutions are designed to simplify pallet management operations and allow customers to source recycled pallets when and where they are needed. 48forty operates a national network of more than 235 facilities, including 60 Company-owned and operated pallet recycling plants, 160 onsite and 12 reverse logistics centers, five sorting centers, and over 850 service providers.
Since acquiring 48forty in November 2020, the company has acquired 10 pallet companies. Most recently, it acquired Pallet Consultants and Bo’s Pallets in March 2022. The company states that it has invested in new facilities, technology, automation capabilities, and talent to support continued expansion.
Summit Partners investment will help accelerate expansion momentum
“We are thrilled to welcome Summit to the 48forty team and continue our partnership with Audax as we build on our market position,” commented Mike Hachtman, 48forty CEO. “We look forward to working together to accelerate 48forty’s momentum and further expand our national network with a firm commitment to delivering high-quality, reliable, and comprehensive solutions for customers and suppliers around the country.”
Pallets are a mission-critical component of the supply chain; industry research estimates that as much as 85% of all U.S. goods travel through the supply chain on a pallet. Thousands of customers across numerous industries rely on 48forty to support the success of their supply chains by consistently delivering quality pallets. As one of the nation’s largest pallet recyclers – handling over 300 million pallets a year – 48forty helps ensure its pallets are processed and put back into the cycle for reuse, helping bring efficiency, sustainability, and greater confidence to customers at both ends of the supply chain.
“We’ve been proud to partner with Mike and the 48forty team in creating a leading national platform in the recycled wood pallet market,” noted Young J. Lee, Managing Director, Audax Private Equity. “Since our investment in November 2020, the Company has completed ten acquisitions and delivered solid organic growth, investing in new facilities, technology, automation capabilities, and talent to support continued expansion. We are excited to partner with Summit and support 48forty for its next phase of growth.”
“Maintaining the integrity and managing the environmental footprint of the supply chain is a strategic imperative for many businesses, and effective pallet management is an important part of this process,” added John Carroll, Managing Director, Summit Partners. “We believe 48forty sits at the intersection of commerce enablement, warehouse and distribution supply chains, and ESG initiatives, offering high-quality, end-to-end solutions designed to lower costs and minimize environmental impact. We are thrilled to join Mike and his team to further their mission of simplifying pallet management.”
Piper Sandler served as lead financial advisor and Lincoln International served as co-advisor to 48forty and Audax. Ropes & Gray served as legal advisors to 48forty and Audax. Latham & Watkins served as legal advisor to Summit Partners.