Information on the target
Orangewood Partners has acquired a majority interest in Refrigerated Solutions Group (RSG) through THRM, a newly established platform aimed at acquiring and building foodservice equipment and services businesses. RSG specializes in manufacturing commercial refrigeration equipment utilized by restaurants, grocery stores, convenience stores, laboratories, and pharmacies. The company operates under the well-known Master-Bilt and Norlake brands, offering a diverse range of products including walk-in coolers and freezers, refrigeration systems, glass-door display cases, and ice cream cabinets. Additionally, RSG's Norlake Scientific division produces temperature-controlled refrigerators and freezers designed for the storage of laboratory samples, pharmaceuticals, and other temperature-sensitive materials.
Headquartered in Hudson, Wisconsin, RSG operates manufacturing facilities in Hudson and New Albany, Mississippi, employing approximately 500 individuals. The company has a rich history, with Norlake being founded in 1947 in a garage, initially producing refrigeration equipment for bars and restaurants. Over the years, RSG has evolved significantly, having been acquired by Standex International in 2003 and later sold to Ten Oaks Group in 2020. Under the leadership of CEO Aaron Brown, RSG has strengthened its operations and customer relationships, positioning itself for future growth.
Industry overview in the target’s specific country
The Food Processing (NEC) industry in the United States is a vital component of the broader consumer non-cyclicals sector, contributing significantly to the economy. This industry encompasses a wide range of activities, including the processing and preservation of food products, which are essential for meeting the demands of a growing population. The U.S. food processing sector is characterized by its diversity, with numerous independent operators and a mix of large corporations, creating a competitive landscape that fosters innovation and efficiency.
In recent years, the U.S. food processing industry has experienced notable growth driven by changing consumer preferences, increased demand for convenience foods, and a surge in food delivery services. The ongoing trend towards healthier eating and sustainability has also prompted food processors to adapt their offerings, leading to the introduction of organic and plant-based products. As a result, companies within this sector are investing in advanced technologies and automation to enhance production capabilities and meet evolving consumer expectations.
The commercial refrigeration segment, a crucial part of the food processing industry, is witnessing significant growth due to the rising need for temperature-controlled storage solutions. The U.S. walk-in cooler market alone was valued at approximately $600 million in 2023, with projections indicating a compound annual growth rate of 4.9% through 2032. This growth is attributed to the expansion of supermarkets, convenience stores, and restaurants, alongside stricter food safety regulations that necessitate improved cold storage solutions.
Furthermore, the demand for temperature-controlled storage is not limited to the food sector; pharmaceutical companies and laboratories are increasingly relying on refrigeration solutions to ensure the integrity of their pr…