Tide Rock Invests in a Trio of Businesses

SOLANA BEACH – Tide Rock LLC announced Tuesday (Aug. 13) that it had acquired three varied companies for undisclosed terms.

The acquired businesses are Glenn Wayne Wholesale Bakery of Long Island, New York; Global Electronics Recycling of Phoenix; and Premier LogiTech of Dallas.

The companies are similar to others in the Tide Rock portfolio: they have a business-to-business focus and serve the lower middle market. Tide Rock’s areas of focus include the manufacturing, distribution and services industries.

Tide Rock describes itself as an unlevered buyout company. Its investors are primarily family offices, high-net-worth individuals and institutional investors.

The Solana Beach firm invests in founder and family-owned B2B companies with essential products and services, recurring revenue and between $2 million and $7 million in EBITDA (that is, earnings before interest, taxes, depreciation and amortization).

Because Tide Rock does not have a fund structure with a defined termination date, “we can hold and grow companies long-term,” CEO Ryan Peddycord told the San Diego Business Journal in 2020.

Synergies Seen in Electronics Recycling

With the acquisition of Global Electronics Recycling (abbreviated GER), Tide Rock is growing a business it already has.

“The addition of GER further bolsters the national footprint we established in the electronics recycling space with the growth of Full Circle Electronics over the last two years,” said Mark Papp, President of Tide Rock YieldCo West Coast. “The companies have several immediate synergies that mutually benefit enterprise customers and prospects, particularly in the communications and aerospace and defense industries.”

GER is a professionalized IT asset disposition (also known as ITAD) and electronics recycling company serving enterprise customers.

The electronics lifecycle is the focus of a second newly acquired business, Premier LogiTech of Dallas. The business offers full sourcing, warehousing, asset management, configuration services, fulfillment services, delivery, reverse services, product repair and reclamation.

As part of this investment, Premier has acquired the global license for Motorola networking products.

Premier LogiTech is “a critical addition” to the Solana Beach company, said Brooks Kincaid, president of Tide Rock. “Their comprehensive suite of services and deep integration with industry leaders align well with our vision of investing in platforms that deliver exceptional value and quality to its customers.”

Premier launched in 2007. Today it operates on a state-of-the-art execution system, a warehouse management system to manage orders and inventory, an ultra-modern manufacturing execution system, and a proprietary enterprise platform to interconnect production, back office and client systems seamlessly.

Opportunity Smells Sweet

Tide Rock sees a definite opportunity for expansion with Glenn Wayne Wholesale Bakery in Bohemia, New York – a small community on Long Island roughly 50 miles outside New York City.

According to IBIS World, the North American bakery market was valued at $50 billion in 2022 and is poised to grow to $55.6 billion by 2028.

“Glenn Wayne has tremendous opportunity to broaden its customer base and explore additional opportunities for expansion,” said Kincaid. “The bakery market has proven to be one of the most resilient categories within the food industry, and their newly obtained gluten-free certification opens several new markets.”

Glenn Wayne boasts a 40,000-square-foot facility and 6,000-square-foot warehouse strategically located near priority distributors and customers, providing ample expansion opportunities. The business relies on automated production processes, inventory management and ordering systems, turning out its products in volume. Founded in 1990, Glenn Wayne Wholesale Bakery produces doughnuts, muffins, Danish pastries, cookies, brownies and other baked goods.

The trio of acquisitions follow other transactions in the spring. Tide Rock announced in May that it took on Premier Packaging Inc., a contract packaging company with expertise in the beverage sector based in Memphis, Tennessee. Terms of the deal were not disclosed.

Memphis is a major transportation hub with the presence of FedEx Corp. (NYSE: FDX).

Following Acquisitions in the Spring

In April, Tide Rock said it acquired CABLENET Aerospace for undisclosed terms. The Denver-based business is a contract manufacturer for the aerospace, military, space and OEM industries. CABLENET specializes in turnkey applications for GSE (ground support equipment), EGSE (electronic ground support equipment) and space launch infrastructure, including test tooling design, engineering, manufacturing and prototyping to customer specifications.

Tide Rock, which splits its headquarters between Solana Beach and New York City, announced in 2021 that it raised more than $100 million in capital to acquire B2B firms.

One of the advantages of Tide Rock ownership is that the firm provides back-office services for acquired companies.

Tide Rock LLC
FOUNDED: 2013
CEO: Ryan Peddycord
HEADQUARTERS: Solana Beach
BUSINESS: Unlevered buyout firm
WEBSITE: tiderock.com
CONTACT: (858) 367-0502
NOTABLE: Tide Rock invests in founder and family-owned B2B companies with essential products and services, recurring revenue and EBITDA between $2 million and $7 million