Longtime player in the Southeast Wisconsin pallet market, Goeman’s Wood Products Inc. has sold a majority of its assets to Pallet USA, a portfolio company owned by private equity firm Blackthorne Partners. The transaction was completed earlier this month. Details of the sale were not released.
The new company will be known as Pallet USA. It will have the capability to manufacture new and reconditioned standard pallets, custom-sized pallets and shipping crates, as well as complete pallet repairs, engineering and design for wooden packaging or crating and pick-up and delivery.
The 65,000-square-foot Goeman’s facility in Hartford, Wis. will become the company’s headquarters. It is expected the transaction will result in hiring at both locations.
Former Goeman’s owner Danny Goeman will transition into retirement although he will continue to be with the company for some time. Goeman’s controller John Sonn has been named president of Pallet USA.
John Sonn said that the two facilities will complement each other because the Goeman plant has pallet and crate manufacturing capabilities whereas the Pallet USA plant in Lannon, Wis. is primarily a recycling facility. The combined company plans to continue to grow both in terms of equipment and personnel. Although the facilities are less than 25 miles from each other, the acquisition makes sense from a business synergy standpoint as well as the combined strength of the two companies.
“With this transaction, Pallet USA is a one-stop shop for businesses in southeastern Wisconsin and beyond. We have the capacity to serve companies in the Fortune 500 range to small businesses,” Sonn said. “Along with this great product and service line-up, we promise outstanding customer care and service.”
Pallet USA plans to continue making acquisitions in the pallet industry, said Steve Balistreri, a partner at Blackthorne. Sonn explained that meant the possibility of future acquisitions in the state of Wisconsin.
“We believe we can bring significant efficiencies to the pallet industry – efficiencies that will benefit the many market sectors that rely on pallets and crates for shipping and material handling,” Balistreri said. “This acquisition is a major step toward that goal for Pallet USA.”
Blackthorne Partners invests in small companies serving a variety of sectors. It currently owns an information technology (IT) firm that supports SAP products, a manufacturer of aftermarket parts and accessories for utility equipment, the pallet division and a healthcare IT services business.
