Information on the Target

Decks & Docks is a premier American distributor specializing in materials for maritime infrastructure construction and outdoor enhancements. Founded in 1991 and acquired by its current owners in 2005, the company has grown from a single location to 34 sites across 11 states, establishing itself as the largest distributor in its niche in the eastern United States. Decks & Docks offers a diverse portfolio of more than 15,000 products, serving various B2B clients, including contractors focused on maritime and outdoor infrastructure.

Headquartered in Clearwater, Florida, Decks & Docks has built a strong reputation for its technical expertise and high-quality customer service. It maintains a robust inventory and ensures prompt delivery to client job sites via its own fleet of trucks. This growth has been driven not only by opening new locations but also by strategic acquisitions, further solidifying its market presence.

Industry Overview

The outdoor living and maritime infrastructure industry in the United States is experiencing significant growth, driven by rising consumer interest in outdoor recreational activities and home improvement projects. This market has become increasingly attractive due to a growing demographic of affluent consumers seeking high-quality products to enhance their outdoor living spaces.

With climate change posing challenges to coastal regions, there is a growing demand for innovative products that mitigate environmental impacts while providing durability and aesthetic appeal. Companies that can offer such solutions are well-positioned to lead the market, leveraging both consumer trends and environmental considerations.

As states increase their investment in infrastructure improvements, particularly in coastal areas, the demand for reliable suppliers and distributors like Decks & Docks is expected to rise. This aligns with Decks & Docks' commitment to offering cutting-edge products that meet evolving market standards.

The competitive landscape is characterized by established distribution channels as well as new entrants, which may impact market dynamics. However, Decks & Docks’ extensive network, coupled with its superior service and product offerings, positions it favorably for continued growth and market penetration.

The Rationale Behind the Deal

The acquisition of Decks & Docks is grounded in a strategic vision aimed at expanding its market share and enhancing its geographic footprint. With backing from CCMP Growth Advisors and Edmond de Rothschild Equity Strategies, the company plans to leverage its existing capabilities to accelerate growth initiatives, including the establishment of new locations and potential acquisitions.

Investing in Decks & Docks aligns with the investors’ focus on businesses that cater to high-income consumers and contribute to sustainable environmental practices. The collaboration with seasoned leadership ensures that growth strategies will be implemented effectively under the guidance of its current CEO and President.

Information about the Investor

CCMP Growth Advisors, LP, is recognized for partnering with leading growth-oriented companies across various sectors. The firm specializes in identifying and nurturing businesses that have the potential for substantial growth, particularly focusing on expanding platforms with multiple locations. Their methodology emphasizes collaboration and operational support to achieve long-term success.

Edmond de Rothschild Private Equity, part of the Edmond de Rothschild Group, manages over 3.5 billion Swiss Francs in assets. The firm adopts a discerning investment approach, prioritizing companies with sustainable growth narratives and a commitment to addressing environmental and social challenges. They leverage their extensive industry experience to create impactful investment strategies.

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The acquisition of Decks & Docks presents a compelling investment opportunity rooted in a strong growth trajectory and a significant market position. Given its successful historical performance and the favorable industry dynamics, Decks & Docks stands to benefit from the support of experienced investors who are aligned with its vision for expansion.

The company's focus on high-quality products in the context of increasing consumer demand for outdoor living solutions underscores its potential for profitability. The strategic investments planned by CCMP Growth will likely enhance Decks & Docks’ capabilities and market reach, further bolstering its competitive edge.

Moreover, as Decks & Docks executes its growth strategy, the potential for scaling operations through new locations and strategic acquisitions bodes well for its financial outlook. The partnership with CCMP Growth and ERES IV provides the necessary resources to capitalize on these opportunities effectively.

In conclusion, this deal could indeed represent a significant milestone in Decks & Docks' evolution, especially with a strong leadership team at the helm and an investment strategy that resonates with contemporary market demands.

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