Branford Castle buys Drew Foam from Gladstone Investment Corp

Branford Castle has acquired Monticello, Arkansas-based Drew Foam Companies, a provider of polystyrene foam products. The seller was Gladstone Investment Corp. No financial terms were disclosed.


New York, June 4 – Branford Castle, a New York-based private equity firm, today announced the acquisition of Drew Foam Companies, Inc., a leading provider of custom-fabricated expanded polystyrene foam (“EPS”) products serving the packaging, building products and consumer end-markets, primarily in the Southeastern United States. The acquisition is the 5th for the Branford Castle Fund which had its final close in late 2016.

Branford Castle is purchasing the company from Gladstone Investment Corporation, a publicly funded traded BDC, key management members and a co-investor. “The fund is moving quickly to put capital to work. We are delighted with the companies we have purchased and their performance to date,” said Laurence Lederer, Managing Director, of Branford Castle Partners. “We are especially excited to partner with Drew Foam’s CEO, Bill Givens, and the rest of his team on this transaction.”

Headquartered in Monticello, Arkansas, the company has three operating facilities, in Monticello, Portland, Tennessee, and Anderson, South Carolina. The company, founded in 1965, offers quick turnaround for customers who often demand just-in-time (“JIT”) delivery for products. Most competing EPS suppliers require long production (high-volume) runs to create manufacturing efficiencies. Drew offers customers flexibility. It processes more than 100 different orders per day, with an estimated 80% of its orders manufactured and shipped on company trucks within 24 hours of receipt and 95% shipped within 48 hours. Drew has more than 700 customers, with no single customer accounting for more than 5% of sales, and its customer retention rate is in excess of 97%.

“Drew’s logistical capabilities and ability to deliver low-volume custom products on a just-in-time basis are unique competitive advantages,” said John S. Castle, President and CEO, of Branford Castle Partners. “We are looking forward to enhancing the company’s packaging-industry growth, extending its customer base, innovating new products and entering new regions.”

The purchase of Drew follows Branford’s acquisition of Vitrek, a leading manufacturer of sophisticated electrical safety test and measurement equipment; Surface Preparation Technologies, the leader in cutting rumble strips for roadway safety; Earthlite Massage Tables, the world’s No. 1 brand of products for the spa, massage and wellness industries; and Continuum Foot Spas, LLC, a leader in the premium pedicure chair market and a highly complementary bolt-on acquisition for Earthlite.

Terms of the transaction were not disclosed.

About Branford Castle Partners (
Led by John S. Castle and David Castle, Branford Castle is a lower-middle-market investment fund formed in 2016. Between 1986 and 2016, Branford operated as an award-winning family office. Building from its significant investment efforts, Branford created the fund to open its investment operations to outside investors. With each new investment, Branford builds on its 30+ year history of helping to grow businesses. The firm typically makes control investments in companies with less than $15 million of EBITDA and a leadership position in a niche industry. Branford is particularly keen on the strong relationships it develops with its portfolio company managers.
Branford has particular expertise in consumer products and services, commercial distribution, business services and logistics. Branford also brings the expertise from its affiliation with the management at the leading middle-market investment firm Castle Harlan.