Cleveland, OH–Private equity firm, Foundation Investment Partners (FIP), announced the sale of its investment in Discount Drainage Supply (Discount Drainage or DDS) to Winsupply Inc. , one of the largest distributors in the nation.
The sale includes all three DDS locations in Akron, Columbus and Cincinnati. Terms of the transaction were not disclosed.
Based in Akron, DDS is the largest stocking distributor of drainage pipe and related products in Ohio, including culvert pipe, PVC piping and septic supplies. FIP acquired Discount Drainage in 2018 from Jim and Pete Gory and partnered with them to further the company’s sales and growth and increase productivity in all areas of operations.
“Our operating model is to actively collaborate with our management teams in pursuit of sustainable growth, by providing tactical support, strategic guidance and the financial resources necessary to be successful,” said David Wood, managing partner of FIP. “When we make an acquisition, ideally we want to work with the entrepreneurs. Often they are retiring and not only want to sell their business but also to ensure its future success. With DDS, FIP successfully recruited a new CEO and CFO, professionalized operations, and accelerated growth. In doing so, FIP generated an attractive return for our investors and provided our employees with a quality new partner.”
“Discount Drainage has developed an excellent reputation since it was founded in 1986 for sales and service in their three regional markets,” said Monte Salesman, president of Winsupply Acquisitions Group. “They are known for maintaining a large inventory of pipe, fittings and accessories for on-time delivery to their customers’ job sites.”
About Foundation Investment Partners
Foundation Investment Partners is a private equity firm focused on acquiring niche manufacturers, high value-added distributors, outsourced business service providers, and niche software developers with EBITDA levels of $1 million to $6 million. FIP’s operating model focuses on partnering with the owners or operators of smaller businesses to provide the support, guidance and resources necessary to grow the business.