Middle-market private equity firm Genstar Capital is investing in Power Products, a supplier of aftermarket electrical equipment for the construction and recreational marine sectors, to support the target’s new product growth. Financial terms of the deal were not disclosed.
Power Products designs branded electrical consumables, wiring products, harsh-environment power conversion tools, transformers, inverters, switches and other electrical accessories. The target distributes its products through a variety of brands, including: Del City, Gardner Bender, Sperry Instruments, Lenco Marine, Marinco, Mastervolt, ProMariner, BEP, and Blue Sea Systems. Genstar is purchasing Power Products from Sentinel Capital Partners.
“Technical innovation remains key to our growth, and we are jointly committed to developing our technically differentiated portfolio of premium brands within diverse and growing end markets,” states Power Products CEO David Scheer. The target is headquartered in Menomonee Falls, Wisconsin with additional locations across North America, Europe and the Asia Pacific region.
San Francisco-based Genstar invests up to $300 million in equity towards businesses that have at least $10 million in Ebitda. The PE firm focuses on the industrial technology, health care, software and financial services sectors. Genstar has been quite active lately. The firm recently acquired Duckworth Wealth Advisors through portfolio company Mercer Advisors Inc. and also began raising capital in January for its eighth private equity fund.
Deals involving maintenance and construction product businesses have been robust recently. Related deals include: Tech Air’s, backed by CI Capital Partners, completed deal to buy two welding suppliers; Berkshire Hathaway Inc.’s purchase of Wilhelm Schulz GmbH; Graycliff Partners’ backing sheet maker A-1 Machine Manufacturing Inc.; Liberty Hall Capital Partners’ acquisition of aerospace parts supplier ZTM Inc.; and LFM Capital’s investment in hydraulic clamps maker Vektek LLC.