LDI Composites Tombstone

MINNEAPOLIS, MN– Investment Banking firm, Quazar Capital Corporation, is pleased to announce that their client, LDI Composites Co., has sold their decking and railing line to ExteriaTM, The Composite Solutions Company.

THE SELLER– LDI Composites Co. is a division of Diversi-Plast (a Liberty Diversified Industries company) and is based in Green Bay, Wisconsin. LDI Composites manufactures and sells composite decking, railing, and roofing materials. The Company utilizes recycled content in the patented manufacturing process and their products have become a green alternative for builders, remodelers, and homeowners throughout the United States and Canada. The eco-friendly product is also extremely fade resistant, lightweight, and strong.

THE BUYER– The Composite Decking & Railing lines have been acquired by Green Bay, Wisconsin-based Exteria™, The Composite Solutions Company. The Exteria Investment Team is a group of professionals with successful track records in operations, manufacturing, and distribution. As a result of Exteria’s patented and environmentally friendly formula, their products are industry leading in mechanical strength, colorfastness, and scratch-resistance. Exteria plans to introduce its next generation of composite products in 2010 in the residential, commercial, and marine industries.

THE SITUATION– LDI Composites Co. was purchased by Liberty Diversified Industries in 2005 and was merged into the Diversi-Plast division. After purchase, integration, and operation, it was determined that the decking and railing lines were not meeting the expectations set forth by the Parent Company. The Senior Management Team was at a crossroads and needed to evaluate the benefits of shutting down the operation entirely or marketing the company in a sale process. The management team decided to attempt a sale in an effort to recover some of the company’s investment. Quazar Capital Corporation was engaged to help market LDI Composites Co. in a timely and confidential manner.

THE CHALLENGE– The biggest challenge during the sale process was overcoming the uncertainty in the marketplace. The recessionary conditions seemed to have a paralyzing effect on people in the construction and remodeling industries. Quazar performed a balancing act that consisted of showing the buyers how to reduce their risk while negotiating a fair price for the seller.

THE RESOLUTION– Quazar worked very closely with the LDI team to identify and approach strong prospective buyers. An investment group with ties to the Green Bay community emerged as a promising prospect. Quazar was able to negotiate and facilitate a sale that satisfied the needs of the Parent Company while preserving the jobs of the local community. Steve Richardson, Vice President of Liberty Diversified Industries said, “We are pleasantly surprised with the results that Quazar produced- my thanks to you and your team!”.