HEARTWOOD PARTNERS INVESTS IN ROYAL PRODUCTS TO SUPPORT GROWTH

NORWALK, Conn., Sept. 16, 2024 /PRNewswire/ — Heartwood Partners is pleased to announce a growth investment in Royal Products (“Royal” or the “Company”) on April 12, 2024, in partnership with the management team who will continue to lead the Company.

Heartwood Partners’ commitment to supporting Royal Products’ growth will position the Company for continued success.

Headquartered in Hauppauge, NY, Royal Products is an industry-leading manufacturer and distributor of premium, branded metalworking performance accessories. For over 75 years, manufacturers have trusted Royal Products to optimize the performance, productivity, and profitability of computer numerical control (“CNC”) machine tools. Please visit the Royal Products website at www.royalproducts.com to learn more about the Company’s history and product offerings.

“We are thrilled to announce our partnership with Heartwood Partners and start the beginning of an exciting new chapter in Royal’s growth. Heartwood and our management team are fully committed to preserving the exceptional customer service and distinctive family business values that set Royal apart in our industry. We are confident that Heartwood’s commitment to maintaining a strong balance sheet and the resources they provide to support growth will position the Company for continued success,” stated Tom Sheridan, CEO of Royal Products.

“We are excited to partner with Royal Products and its management team. Royal has developed an incredibly strong foundation over its 75+ year history through its dedication to best-in-class products and exceptional customer service,” said Demetrios Dounis, Managing Partner of Heartwood Partners. He further added, “Royal aligns perfectly with our approach of partnering with management teams and our focus on growth through investment in people, processes, and add-on acquisitions. We intend to drive future growth by leveraging the Company’s well-established brand and market leadership to expand into new markets, both organically and through strategic add-on acquisitions.”

Heartwood Partners would like to recognize the investment banking team at Carl Marks Advisors for their efforts in closing this transaction and making this partnership possible. Lincoln International served as financial advisor to Heartwood Partners for the transaction.

Heartwood Partners, a middle market private equity firm founded in 1982, is differentiated by a unique lower-leverage, current cash yield approach designed to create partnership with continuing management. Our approach combines a conservative capital structure with strategic execution to support long-term growth, including organic and acquisition-driven expansion into new products, services, and end markets. In addition, we support each management team with our in-house Value Creation Specialists who provide deep, subject-matter expertise in strategic areas such as eCommerce and digital marketing, human capital and organizational design, and IT improvement and acquisition integration. We currently manage over $1.4 billion in investments and commitments, and our principals have invested in more than 100 platform and add-on acquisitions. Heartwood is currently investing from Heartwood Partners IV, LP, and is focused on founder, family and management-held businesses serving the niche manufacturing, specialty chemicals, food, agriculture, packaging, and industrial & consumer services markets. For additional information about Heartwood, please visit www.heartwoodpartners.com.

Royal Products is an industry-leading manufacturer of precision metalworking performance accessories. Headquartered in Hauppauge, NY, Royal Products has been trusted by manufacturers since 1946 to help optimize machine tool performance, productivity, and profitability. Royal offers a broad range of premium, branded products across workholding, mist collection, tooling, and automation, and its products are sold through a select network of industrial distributors, machine tool distributors, machine tool builders (OEMs) as well as online on the Company’s website. For over 75 years, Royal has strived to maintain a reputation for best-in-class quality, service, and support, and the Company is proud to ship 97% of its orders within the same day. For additional information about Royal Products, please visit www.royalproducts.com.