Exchange Income Corporation (EIC), a diversified, acquisition-focused company with a strong presence in Aerospace & Aviation and Manufacturing sectors, has announced the signing of a purchase agreement to acquire Spartan Mat, LLC and its subsidiary Spartan Composites, LLC for a total of US$120 million. The transaction, expected to close within the week, will be funded through a combination of US$18 million in EIC common shares and US$102 million in cash from the Corporation’s credit facility. This acquisition aligns strategically with EIC’s expansion into the US matting market and bolsters its Environmental Access Solutions business line.
Spartan Composites, based in Rockledge, Florida, is the innovator behind the SYSTEM7™ and recently launched SYSTEM7-XT™ industrial composite access mats, making it one of just three industrial composite mat manufacturers in the US. The SYSTEM7 mats, measuring 8′ x 14′, are fully interconnectable, recyclable, and offer a sustainable alternative to traditional wood mats. They are lighter than wood mats, reducing transportation costs and minimizing the carbon footprint. Spartan Mat also operates as a broker of wood and composite mats across the US.
The US ground protection market is projected to grow significantly, driven by increased spending on Transmission & Distribution (T&D) infrastructure, which is being modernized to enhance grid resiliency and integrate renewable energy. Composite mats are becoming a preferred choice due to their cost-effectiveness and sustainability, positioning Spartan’s products as a key part of this trend. This acquisition enhances EIC’s capabilities in composite manufacturing, positioning the company to capitalize on anticipated market growth.
“We’ve spent the last two years researching the US ground protection landscape and evaluating acquisition opportunities,” said Mike Pyle, CEO of EIC. “It was clear that composite alternatives were gaining prominence, and Spartan’s innovative products and market positioning made it the ideal partner to accelerate our growth in the US market.”
Justin Thelin, CEO of Spartan, expressed excitement about the partnership, noting that Spartan has been at the forefront of the shift from wood to composite mats. “Partnering with EIC provides the support we need to expand our reach and take Spartan to the next level,” he said. “We look forward to continuing the Spartan story with EIC’s backing.”
Adam Terwin, CCDO of EIC, highlighted that the acquisition aligns with EIC’s strategy and is expected to be accretive to shareholders. “We are particularly excited about Spartan’s recent facility upgrades and the launch of the SYSTEM7-XT, which positions the company well to meet increasing market demand.”
In addition to the SYSTEM7 mats, Spartan Composites manufactures the FODS Trackout Control System, a reusable construction entrance mat that offers a more effective solution than traditional rock and gravel alternatives. This product, which has seen strong market adoption since its launch in 2016, is made at Spartan’s Florida facility.
“The FODS Trackout is a disruptive technology in the construction industry and is poised to continue gaining market share,” said Mike Pyle. “Together, the SYSTEM7 and FODS Trackout product lines will diversify EIC’s Environmental Access Solutions business and address a range of customer needs.”
Darren Francis, CEO of Northern Mat and Bridge, noted that Spartan’s innovative products will further strengthen their position in the Canadian ground protection market. “The addition of SYSTEM7-XT and FODS Trackout mats enhances our product offerings and sets us apart as a leading provider of access solutions,” he said.
Transaction Advisors:
BakerHostetler served as legal counsel to EIC, while Osborn Maledon, P.A. acted as legal counsel to Spartan.
