Guess what? Whiteboards are out. Steelcase Inc. Monday announced it has sold all of the issued and outstanding capital stock of PolyVision Corporation to an affiliate of Industrial Opportunity Partners.
Steelcase purchased PolyVision on August 27, 2001 for $176 million and also took on roughly $103 million in PolyVision debt. The private equity firm purchased PolyVision for $74 million, according to SEC filings.
James P. Hackett, Ford Motor’s current CEO was CEO of Steelcase during the time the company purchased PolyVision.
At the time of the purchase a Steelcase PR release noted: "We're pleased to add PolyVision to the Steelcase family," said Michael Love, President and Chief Executive Officer of the Steelcase Design Partnership. "With the addition of PolyVision's products and advanced technology capabilities, Steelcase will be able to provide an entire suite of innovative visual communication tools."
In 2009 Steelcase sold a low-margin line of white-board products made by its Polyvision division in Dixonville, Pa. The white board plant's inventory and backlog were acquired by Marsh Industries Inc., an Ohio vendor of Polyvision. The Pennsylvania plant was closed and 175 workers lost their jobs.
PolyVision, which was founded in 1954 and does business in more than 65 countries, reported $48.2 million in revenue for the first three quarters of its 2020 fiscal year.
PolyVision is a U.S. and Belgium-based manufacturer of ceramic coated steel used in whiteboards, chalkboards, and architectural cladding. Industrial Opportunity Partners is a U.S.-based private equity firm focused on investing in middle market manufacturing and distribution businesses.
“This transaction reflects Steelcase’s commitment to disciplined portfolio management in pursuit of growth. Steelcase has been investing to support its growth strategies in the office furniture industry. Continuing to execute these growth strategies requires periodic investment prioritization, and the sale of PolyVision will allow Steelcase to allocate capital and organizational capacity to other opportunities,” said the company in a press release yesterday.
Jim Keane, President and CEO of Steelcase, said, “This transaction enables us to provide greater focus and resources to our growth strategies while simultaneously allowing PolyVision to flourish under new ownership solely focused on its success.”
Steelcase and its affiliates will continue to market certain PolyVision branded products to provide customers with a full suite of collaboration solutions, and all PolyVision employees remained with the company following the closing of the transaction.
Chris Willis, Director at Industrial Opportunity Partners, said, “We are excited to partner with the PolyVision team. We believe that PolyVision has a strong position in the market and an excellent reputation with its customers.”
Industrial Opportunity Partners is based in Evanston, Ill. and invests primarily in middle-market manufacturing and distribution businesses. The firm has $910 million of committed capital since its inception.