Powering up: Shorehill Capital forms electric utilities supplier
Private equity firm Shorehill Capital LLC has formed Power Grid Components Inc., a U.S. distributor of insulators for the electric utilities and municipalities service providers. The PE firm has partnered with industry veteran Rick McClure, former chief executive officer of utility products distributor Utiliserve Inc., on the deal.
Power Grid Components, headquartered in Chicago, supplies “high quality” porcelain, glass and polymer insulators to electric utilities, substation manufacturers and other providers to the power grid industry. Since inception, the target has completed two add-on acquisitions including Newell-PSN LLC and PSN Components LLC. Power Grid acquired Columbiana, Ohio-based Newelland PSN in November 2017.
Shorehill Capital is a Chicago-based private equity firm focused on the lower middle market. As part of the deal for Power Grid Components, the firm has tapped Rick Stanley to help lead the new company as chief operating officer. Shorehill makes control equity investments in North American engineered industrial product, industrial service and distribution companies with enterprise values up to $150 million.
Other middle-market deals involving the power grid and connectivity industry includes: Itron Inc.’s (Nasdaq: ITRI) $830 million acquisition of Silver Spring Networks Inc. (NYSE: SSNI) for the company’s smart grid and utility products; and One Equity Partners’ buying of SGB-SMIT, an independent manufacturer of electrical power transformers.
TCF Capital Funding provided financing to support the acquisition of Newell and PSN. Perkins Coie LLP served as legal adviser to Power Grid, while MB Financial Inc. served as financial adviser to the sellers of Newell/PSN.