New deal establishes largest turf business in country
Dutch company buys interest in Dalton, Ga., landscape company
A Dutch company has bought a controlling interest in a longtime Dalton, Ga.-based venture to create what’s called the largest landscape turf business in the United States.
TenCate Grass, a global leader in the development, production and marketing of synthetic turf components, acquired the interest in Challenger Industries, according to Chattanooga-based FourBridges Capital Advisors.
Chris Rowe, a managing director of the investment banking firm that acted as an adviser to Challenger, said the combined revenues of TenCate Grass and Challenger is more than $1 billion.
Challenger was the largest independent manufacturer of artificial grass, serving the landscape, sports and residential markets.
The company, which employs about 100 people at its 250,000-squarefoot facility in Whitfield County, will operate in Dalton as Challenger Turf Inc., according to FourBridges.
Rowe said that Challenger, started in 1983 and co-owned by Steve White and son Andy, is expected to eye an expansion of its Dalton business in the future as a result of the deal.
“They’ll be looking to grow,” he said. “They’ll be producing more. It will give them a steady supply of raw material.”
Rowe said that TenCate, which has a production plant in Dayton, Tenn., makes the raw material which Challenger uses.
Steve White, Challenger’s chief executive, said the business had received calls from potential buyers over the years and it needed help navigating the process.
“They’ll be looking to grow.” – CHRIS ROWE, A MANAGING DIRECTOR OF FOURBRIDGES CAPITAL ADVISORS, ABOUT CHALLENGER TURF INC.
He said that FourBridges “helped us identify the right partner and negotiate a deal that positions Challenger for long-term success.”
TenCate is backed by Gilde Partners, the largest private equity firm in Holland. It operates production facilities in North America, Europe, the Middle East and Asia Pacific.
The value of the deal wasn’t announced.
Rowe said that FourBridges solicited indications of interest from several potential partners, then worked with Challenger to evaluate options. It focused on key considerations such as vertical integration, with sourcing raw materials one of the industry’s primary challenges, and strong chemistry.
“In any industry consolidation, it can be a challenge to find the right partner,” said Rowe. “Challenger and TenCate are a strong fit, and we expect to see this new partnership lead to ongoing growth and continued success.”