Acacia Research acquires Deflecto Acquisition for $103.7M

Acacia Research (ACTG) announced that is has acquired Deflecto Acquisition for $103.7M. Headquartered in Indianapolis, Indiana, Deflecto is a specialty manufacturer of products serving the commercial transportation, HVAC and office markets. Under Acacia’s ownership, Deflecto will continue to be led by Ross Pliska, CEO, and the existing Deflecto management team. Its products include emergency warning triangles and vehicle mudguards used by the transportation industry, various airducts and air registers used by the HVAC market and literature, sign holders and floormats used by the office market. Deflecto manufactures its products at nine manufacturing facilities across the United States, Canada, the United Kingdom and China. In the trailing twelve-month period ended August 31, Deflecto generated revenue of approximately $131M. Based on current market conditions and trends, Acacia expects Deflecto to generate approximately $128M-$136M in revenue in 2024. The transaction was funded utilizing cash on hand and borrowings under a new senior secured credit facility guaranteed by certain subsidiaries of Deflecto. Following distribution of the transaction proceeds, Deflecto will have approximately $48M outstanding under the facility and $10M of cash on hand.