PLZ Aeroscience
Expanding an Uncanny Expert Into the Leading Solution Provider
In 2005, AEA’s Enterprise Partners (“AEA Enterprise”) fund invested in PLZ Aeroscience Corporation (“PLZ”), a founder-led short-run, aerosol manufacturer for both the institutional and consumer markets. The company develops the majority of aerosol formulations for its customers in-house, with over several thousand different formulations created since inception.
AEA Enterprise identified PLZ as an emerging market leader by virtue of its superior formulating capability and production efficiency, which enabled the business to grow its market share over its 30-year history while maintaining substantially superior margins. The AEA Enterprise team worked closely with management to prioritize growth opportunities, including strategic acquisitions, a greenfield plant and branded product expansion. Notably, management successfully accelerated retail sales and new distribution wins at Walmart, Target and Safeway under AEA Enterprise ownership. AEA Enterprise also supported PLZ’s acquisition of Claire-Sprayway, another leading producer of aerosol products, which doubled the size of the business and led to significant cost synergies. PLZ made three further acquisitions and opened a greenfield plant in the middle of the recession to double its capacity.
PLZ transformed from an exceptional niche player to the outright leader in the short-run aerosol market.
Created Value
4
Acquisitions to expand product footprint and add sales channels & brands
2x
Increase in manufacturing capacity via greenfield plant buildout
4x
Growth in retail sales channel revenue
3
AEA participants board members provided strategic thought leadership
“I partnered with AEA to take advantage of a market fragmentation that had high manufacturing costs and a generational turnover. PLZ believed we could leverage our low cost position and AEA’s experience and resources to build a substantial market leader.”