North American Specialty Laminations (NASL) announced last week the acquisition of Diversified Manufacturing of California (DMOC), a West Coast-based profile lamination specialist. Backed by the private equity firm Building Industry Partners (BIP), NASL is a building products, laminate wrapping, finishing and specialty manufacturing company, serving the door and window industry. The acquisition of DMOC (dba Profile Wrapping) marks NASL’s fourth in 18 months, as the company works to build a nationwide network of laminating facilities, along with a new location in Roanoke, Va.
With the latest acquisition, DMOC now falls under the name and ownership of NASL, officials tell [DWM]. NASL plans to retain all DMOC employees, they said.
In September 2021, BIP formed NASL in partnership with building industry veteran Ted Rock, creating what officials described as “a best-in-class, people-first component profile wrapping and specialty manufacturing organization.” The company began by acquiring the assets of SourceCut Industries Inc., in partnership with SourceCut’s existing owners and management team. In October 2021, it then acquired Sparks, Nev.-based Haida Industries, a provider of component profile wrapping for the window, millwork and building products sectors.
DMOC has provided decorative solutions to a variety of industries for more than 20 years, NASL officials said. The company specialized in applying acrylic exterior laminates, as well as real wood, paper and paintable and stainable veneers. “DMOC’s expertise will immediately augment NASL’s lamination capabilities and capacity, particularly for color products in the window and door markets. It will also facilitate NASL’s access to customers in the Western U.S. and Mexico,” NASL officials said.
With just 2% of the North American market for profile finishing comprised by laminates, “We saw a growing segment that was, before NASL, served primarily by regional, family-run businesses that needed support to grow,” said Pat Mascia, BIP partner and NASL board chair. “We also saw the convergence of multiple market trends that reinforced our belief that there was an opportunity. We believe our end markets are also undersupplied nationally, which told us there will continue to be strong demand for building products.”
Officials point to research conducted by John Burns Consulting, indicating that spending on residential building products is expected to grow to greater than $500B by 2024, including 12% year-over-year growth between 2021 and 2022. Additional studies, conducted by Wall Street Research, show that demand for color has increased by 400% among many of the nation’s largest extruders and manufacturers, NASL officials told [DWM]. To facilitate market growth, “It’s critical that we continue to shorten the supply chain for our customers, as well as help them capitalize prudently on the growing demand for color in building products,” said Doug Rende, CEO of NASL.
With 22 years of experience in the door and window industries, “I’ve worked with multiple window manufacturers,” added Cathy Debes, NASL’s national sales program and business development manager. “They always try to keep their shipping lanes within 500 miles of their customer. Once you go beyond that, it’s almost like you can’t afford it—including the cost of the freight, and especially these days.”
With approximately 20 specialty lamination providers in the U.S., of varying sizes and specialties, “The market is [currently] fragmented,” Mascia suggested. “In addition, some regions do not have a trusted lamination provider that can meet market demand which has resulted in regional customers that need the service shipping product across the country.”
Under the industry’s current status, larger manufacturers with nationwide operations are often forced to piecemeal lamination providers, Debes said.
“In addition to servicing the numerous regional OEMs, several large national OEMs have regional hubs that are currently serviced by a long tail of small lamination providers,” Rende told [DWM]. “Logistical considerations make it such that shipping beyond a ten-hour drive is not cost-effective. There is no specialty laminator servicing North American enterprise customers in multiple regions …”
With each acquisition, NASL aims to shorten its supply chain, company officials told [DWM].
With the latest acquisition, “Our team is excited to be part of building a national business,” said Thane Rivers, founder and former CEO of DMOC, who now serves as NASL’s senior vice president, lamination operations. “We are committed to helping NASL continue on its trajectory of rapid growth and expansion.”
According to company officials, NASL now covers more than 80% of the U.S.
Partners involved in the DMOC acquisition included Holland & Knight LLP, Fifth Third Bank and Intrinsic LLC, and Siguler Guff.
