Facilitating Growth Through Acquisition
PlayCore is the market leader in play and recreation and has built the industry’s most expansive distribution network. PlayCore designs and builds a wide spectrum of commercial playground, park, and recreation equipment, ranging from basic modular play structures to complex, theme-based play environments that require significant creative and engineering competencies. PlayCore also provides a broad array of site amenities, surfacing, seating, and fitness solutions, including picnic tables, benches, bleachers, bike racks, and outdoor fitness stations. Widely recognized as the industry thought leader, PlayCore offers highly differentiated, value-added services, such as design of education programs for playgrounds and parks, and helps customers access funding.
Background
PlayCore was previously owned by a private equity firm that acquired the business in 2007. The prior owner built a management team that successfully executed several add-on acquisitions. Having achieved its investment objectives, in 2013, the prior owner decided to sell PlayCore. Sentinel was selected as the buyer because of our proven record of growing businesses through acquisitions and the strong relationship we formed with PlayCore’s management team during the sale process.
Opportunity
- To acquire, in partnership with incumbent management, the leading play and recreation platform
- To help management continue its organic growth and consolidation of its highly fragmented industry through add-ons
Accomplishments
- Grew dramatically through acquisitions: In its three years with Sentinel, PlayCore made 14 add-on acquisitions, establishing itself as the industry leader.
- Expanded product portfolio and distribution reach: Sentinel helped the business leverage its expansive distribution network to significantly expand its product portfolio. Sentinel also helped PlayCore buy branded Internet and catalog retailers of commercial play products, a channel growing faster than the broader market.
- Built and consolidated facilities: PlayCore established a new West Coast manufacturing facility and consolidated certain manufacturing facilities on the East Coast.
Outcome
During Sentinel’s ownership, PlayCore’s management team more than doubled revenue and EBITDA. After achieving our investment objectives in 2017, Sentinel sold PlayCore to another private equity firm in a successful transaction.
Case studies have been selected for illustrative purposes for management teams of midmarket companies considering a partnership with Sentinel and should not be considered an offer or solicitation of services or an actual or implied endorsement of Sentinel or any security, investment, or portfolio company. The portfolio companies highlighted are not representative of all current and prior investments of Sentinel. A list and description of investments since Sentinel’s inception is available on this website.