Investment firm acquires majority stake in CP Group

Declaration Partners, a New York-based private investment firm, has acquired a majority stake in San Diego-based sorting equipment manufacturer CP Group.

CP Group says the partnership represents a milestone in its 50-year evolution as a company, providing the capital foundation and resources necessary to accelerate innovation, expand operational capabilities and strengthen the company’s position within the waste and recycling industry.

“I am grateful for CP’s loyal employees who have propelled us to lead the industry through their dedication and innovation,” says Bob David, retiring CP Group chairman. “Declaration’s long-term perspective and family-oriented mindset make it the perfect fit to maintain our special culture and take CP to the next level.”

The partnership enables CP Group to expand its engineering and research capabilities, with planned investments in advanced automation technologies, artificial intelligence (AI) integration and next generation sorting systems. CP Group says these investments will strengthen its ability to deliver high recovery rates, operational efficiency and economic value to customers while addressing emerging needs and trends in the industry.

“CP has introduced many groundbreaking innovations and patented technologies to help our customers improve safety, efficiency and output at material recovery facilities and auto shredding plants,” CP Group CEO Terry Schneider says. “With Declaration’s investment, we are primed to accelerate the introduction of new technologies and automation solutions for our partners while maintaining the legendary quality and reliability of our products. We look forward to working with the Declaration team.”

Declaration says it views CP Group as a platform for growth, with both organic growth drivers and potential add-on acquisition opportunities.

Within the industrials space, Declaration has partnered with management teams of other platform companies, including Enstructure, an operator of marine terminals; New Frontier Materials, a provider of aggregates and asphalt; and LMI, a tech-enabled consultancy to the U.S. government.

“We are delighted to partner with the CP Group leadership team to support the company’s next chapter of growth,” says Charles Rayner, partner at Declaration. “The long-term market trends and opportunity for meaningful innovation make CP a great fit for family office investment, which is why we have reserved significant additional capital to support the company in the coming years. We will maintain and expand the company’s USA-based manufacturing, which provides superior durability and cutting-edge automation. CP is now even better positioned to help solve customer and industry challenges holistically.”