Golden Gate Capital has agreed to make a majority investment in elevator parts producer GAL Manufacturing Corp. The founding Glaser family will keep a minority stake in the target.
GAL, founded in 1927 and based in the Bronx, New York. makes elevator parts such as door locks, gears and push button panels. The company also owns the GAL Canada Elevator Products and Hollister-Whitney Elevator Division. Financial terms of Golden Gate's investment were not disclosed. Houlihan Lokey Inc. (NYSE: HLI) is advising GAL.
"As we explored the idea of finding a partner to support the next phase of the company’s growth, our objective was to find a patient, stable investor with a long-term outlook, significant operational expertise and an outstanding track record of helping management teams and businesses thrive," say Herbert and Walter Glaser.
San Francisco-based Golden Gate holds investments in more than 35 companies across six industry sectors that include: industrials, financial services, software, semi-conductors and IT hardware, retail and restaurants, and information technology and business services. The San Francisco-based private equity firm seeks out “change-intensive investments” in order improve a company’s “earnings by catalyzing strategic and operational change,” according to the firm. In 2017, Golden Gate purchased: medical equipment manufacturer Cole-Palmer, restaurant chain Bob Evans, interior design software developer 2020 Technologies, and in 2016 bought aircraft ground support equipment provider Tronair Parent Inc.
Dealmaker interest for parts manufacturers has been quite robust lately, and a dramatic uptick in manufacturing M&A is expected, according to Mergers & Acquisitions’ Mid-Market Pulse (MMP). Recent deals include: Littlejohn & Co LLC’s purchase of Maysteel Industries LLC; KPS Capital Partners LP’s buying steel abrasive manufacturer WHA Holding SAS from a group of investors; Orangewood Partners’ acquiring George Industries LLC; Liberty Hall Capital Partners’ purchasing aerospace parts supplier ZTM Inc.; and LFM Capital’s backing of hydraulic clamps maker Vektek LLC.