Windjammer Capital has acquired Component Hardware Group, a supplier of hardware components and plumbing products to the foodservice equipment industry, from Liberty Partners. Windjammer partnered with management on this acquisition and provided a combination of equity and subordinated debt to complete the transaction.
Component Hardware is the first platform investment in Windjammer’s recently raised $726 million Senior Equity Fund IV. “Component Hardware is a great example of the profile of business that Windjammer seeks to invest in,” said Costa Littas, Managing Principal of Windjammer. “The company is a niche market leader providing significant value to its customers through an ability to supply a combination of high-mix, low-volume product quantities on a just-in-time basis, which is unique in this industry.”
Component Hardware Group, a portfolio company of Liberty Partners since July 2006, is a designer and supplier of specialty hardware components and plumbing products for use in commercial and institutional environments, including restaurants, cafeterias, hospitals, nursing homes, cruise ships, and schools. The company offers nearly 10,000 SKUs across its portfolio of ten product families and four proprietary brands. Products include reach-in refrigeration components, cabinet hardware, canopy hoods, cafeteria components, walk-in refrigeration components, casters, and fabrication supplies. The company is headquartered in Lakewood, NJ, with additional facilities in the Netherlands, Taiwan and China (www.componenthardware.com).
“Component Hardware provides mission critical parts and accessories to a wide range of customers who depend on the company to supply high quality components in a short timeframe,” said Greg Bondick, Managing Director at Windjammer, who led the transaction for the firm. “We are excited to partner with management to support the company’s growth initiatives, which include both domestic and international organic opportunities, as well as strategic add-on acquisitions.”
In addition to Mr. Littas and Mr. Bondick, Craig Majernik (Principal), Caleb Clark (Vice President) and Spencer Allen (Associate) worked on the transaction for Windjammer.
Windjammer makes control investments in middle market businesses with EBITDAs from $10 million to $40 million. Sectors of interest include advanced manufacturing, specialty distribution and business services. The firm has completed investments in 50 platform companies over the past 23 years. Windjammer is currently investing out of its Windjammer Senior Equity Fund IV with capital commitments in excess of $725 million. The firm was founded in 1990 and is based in Newport Beach, CA and Waltham, MA (www.windjammercapital.com).
“Windjammer is exactly the type of partner we were hoping for,” said Harry Franze, CEO of Component Hardware. “The resources Windjammer provides and its successful track record of working with portfolio companies and management teams makes us confident that we will be able to execute on our plan for accelerated growth in the future.”
Houlihan Lokey advised Liberty Partners on the sale of Component Hardware.
© 2013 PEPD • Private Equity’s Leading News Magazine • 7-11-13
