Acacia Research buys 'essential products maker' Deflecto for $103.7M | Rubber News

Oct 31, 2024

NEW YORK—Acacia Research Corp. has purchased Deflecto L.L.C. in a deal that works to expand the Acacia business profile, the company said in an Oct. 21 news release.

The acquisition, valued at $103.7 million, adds a "key business" to the private equity firm's portfolio, Acacia CEO Martin McNulty Jr. said in a statement.

"We are pleased to add Deflecto to Acacia's growing portfolio of strategic assets," McNulty said in a statement. "This acquisition is consistent with the types of opportunities we look for. Deflecto fits in our target size range, sells diversified and necessary goods, and has an excellent management team, led by (Deflecto CEO Ross Pliska), with a demonstrated track record of operational execution and capital allocation."

McNulty and the Acacia team expect that the acquisition will "deliver immediate and significant" revenue to Acacia. Deflecto's product line currently includes indoor and outdoor rubber floor mats and rubber mud flaps, among other products.

In adding the company to their portfolio, the New York-based Acacia will further add to its strategic options within a number of markets, including air ducts, storage and craft solutions, and the transportation industry.

"We believe Deflecto presents attractive near- and long-term value creation opportunities through product and operational optimization, as well as strategic M&A," McNulty said.

Indianapolis-based Deflecto, a "leading specialty manufacturer of essential products serving the commercial transportation, HVAC and office markets," generated $131 million in sales from Aug. 2023 to Aug. 2024. In the upcoming year, Acacia estimates that Deflecto will post $128 million to $136 million in revenue, officials said.

Deflecto currently operates nine manufacturing facilities across the U.S., Canada, United Kingdom and China. As part of the deal, the company will retain its management team, including Pliska.

Pliska is eager to begin working with McNulty and the Acacia team, calling the transaction a "seamless fit" for the Indiana manufacturer.

"Acacia's experienced management team has a history of successfully integrating acquisitions and offers industry expertise, additional capital for future investments and immediate value creation," Pliska said in a statement. "We can't wait to start working with (McNulty) and the rest of the Acacia team."

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