CORE Industrial Partners Company Profile

Background

CORE Industrial Partners is a private equity firm specializing in investments within the North American lower middle-market manufacturing, industrial technology, and industrial services sectors. Established in 2017 and headquartered in Chicago, Illinois, CORE is committed to creating long-term value and measurable results for its partners. The firm's team comprises experienced former CEOs and investment professionals who collaborate to build market-leading businesses. With over $1.58 billion in capital commitments across four funds, CORE focuses on partnering with families, entrepreneurs, and management teams to develop best-in-class companies.

Key Strategic Focus

CORE's strategic focus centers on acquiring and investing in manufacturing and industrial technology businesses that can benefit from its operational and financial expertise. The firm targets companies with revenues up to $200 million, emphasizing those with diverse customer bases and opportunities for value addition. CORE's investment approach includes buyouts, non-core divestitures, and complex situations, aiming to build platforms that serve attractive end markets with a customer-centric approach.

Financials and Funding

Since its inception, CORE has raised more than $1.58 billion in total limited partner commitments dedicated to investing in the industrial sector. In February 2024, the firm announced the closing of $887 million in capital commitments between its $685 million flagship fund, CORE Industrial Partners Fund III, L.P., and $202 million in its new offering, CORE Industrial Services Fund I, L.P., both exceeding their targets. These funds are intended to continue CORE's strategy of acquiring manufacturing and industrial technology businesses and to focus on the highly fragmented industrial services sector experiencing strong growth due to reshoring and the adoption of Industry 4.0 applications in North America.

Pipeline Development

CORE has been active in expanding its portfolio through strategic acquisitions. Notable recent developments include:

General Converting Acquisition (November 2023): CORE acquired General Converting, a provider of premium folding cartons for brands in the food, confectionery, and consumer markets. This acquisition, combined with the earlier investment in Century Box, formed a new platform in the folding carton space, enhancing geographic reach and product portfolio.

Tenere Acquisition (July 2022): CORE's portfolio company, CGI Manufacturing Holdings, acquired Tenere Inc., a manufacturer of custom mechanical solutions for the information and communication technology, fiber, and renewable energy markets. This acquisition expanded CGI's geographic reach and deepened its presence in high-growth, technology-focused end markets.

HealthSpecialty Acquisition (December 2021): CORE's portfolio company, Arizona Natural Resources, acquired HealthSpecialty, a contract manufacturer of skin, body, and hair care products, focusing on premium skincare applications. This acquisition expanded ANR's product portfolio in the premium skincare category.

Technological Platform and Innovation

CORE emphasizes investing in companies that leverage advanced technologies and Industry 4.0 applications. For instance, the acquisition of Tenere Inc. brought in capabilities such as prototyping, design for manufacturability, tooling, sheet metal fabrication, injection molding, assembly, integration, and testing, allowing for comprehensive manufacturing solutions and accelerated new product introductions.

Leadership Team

CORE's leadership team comprises experienced professionals with backgrounds in investment and operational management:

John May: Managing Partner

Frank Papa: Senior Partner

TJ Chung: Senior Partner

Stephen Lee: Chief Operating Officer & Chief Compliance Officer

Matthew Puglisi: Partner

This team brings a wealth of experience in building market-leading businesses and creating long-term value for investors and partners.

Leadership Changes

As of the latest available information, there have been no recent significant changes or appointments within CORE's leadership team.

Competitor Profile

Market Insights and Dynamics

The private equity sector focusing on manufacturing and industrial technology is highly competitive, with firms seeking to invest in companies that can benefit from operational improvements and strategic growth initiatives. The market is characterized by a focus on Industry 4.0 applications, reshoring trends, and the digital transformation of the industrial base in North America.

Competitor Analysis

CORE Industrial Partners faces competition from several private equity firms with similar investment focuses:

KPS Capital Partners: Founded in 1991 and headquartered in New York, KPS specializes in investing in manufacturing and industrial companies, managing assets totaling $22 billion.

SK Capital Partners: Established in 2007, SK Capital focuses on the specialty materials, chemicals, and pharmaceuticals sectors, managing assets of approximately $9.8 billion.

Altor Equity Partners: Founded in 2003 and based in Stockholm, Sweden, Altor invests in mid-sized companies across the Nordic region, with a focus on manufacturing and industrial sectors.

TowerBrook Capital Partners: Established in 2001, TowerBrook is an investment management firm with offices in London and New York, focusing on control investments in large and mid-market companies.

Strategic Collaborations and Partnerships

CORE has demonstrated a strategic approach to building platforms through acquisitions that complement and enhance its existing portfolio companies. For example, the combination of General Converting and Century Box created a new platform in the folding carton space, leveraging over 85 years of experience and expanding geographic presence and capabilities.

Operational Insights

CORE's operational strategy involves partnering with management teams to implement operational improvements, drive growth initiatives, and leverage its team's expertise to build best-in-class companies. The firm's focus on Industry 4.0 applications and the digital transformation of the industrial base positions it to capitalize on emerging trends and technologies in the manufacturing and industrial sectors.

Strategic Opportunities and Future Directions

Looking ahead, CORE aims to continue its investment strategy by identifying and acquiring companies that align with its focus on manufacturing, industrial technology, and industrial services. The firm is likely to pursue opportunities that leverage Industry 4.0 technologies, support reshoring trends, and contribute to the digital transformation of the industrial sector in North America.