Tonka Bay Equity Partners has sold Checkers Industrial Safety Products to Audax Group.
Checkers is a designer, manufacturer, and marketer of branded industrial products used for vehicular safety, asset protection, and workplace safety. The company is based near Denver in Broomfield, CO (www.checkersindustrial.com).
Tonka Bay acquired Checkers in December 2010 after partnering with an industry executive to execute a search targeting safety products companies. The firm’s investment strategy was to capitalize on a highly fragmented market of niche, high-margin safety-related businesses with add-on acquisition opportunities.
In 2011 Checkers acquired Peterson Systems International, a manufacturer of cable protectors and in 2012 acquired HBM Canada Manufacturing, a manufacturer of industrial warning whips and vehicle identification lights. Also in 2012, Checkers bought C&C Signal, a manufacturer of barricade lights, strobes, and other LED lighting products used in traffic safety. Other efforts during the course of Tonka Bay’s ownership included recruiting an experienced and active board of directors and senior management team; expanding the company into international markets; and investing in new product development.
“Given their attractive portfolio of branded safety products, compelling customer value proposition, global reach, and strong management team, Checkers proved to be a successful investment for Tonka Bay,” said Shane Slominski, Principal at Tonka Bay. “Ray Torres and his management team have done a tremendous job establishing the company as a growth platform.”
Tonka Bay Equity Partners invests in highly-engineered manufacturing, value-added distribution and business services companies with EBITDA greater than $2 million. The firm is based in the Minneapolis suburb of Minnetonka (www.tonkabayequity.com).
“Tonka Bay has been a value-added partner,” said Ray Torres, CEO of Checkers. “They have provided guidance and capital to make strategic investments, which has allowed us to accelerate growth and further establish Checkers as an industry leader of safety products.”
The buyer of Checkers, The Audax Group, makes control investments of $10 million to $100 million in middle market companies with transaction values of $25 million to $500 million. Audax has over $6 billion in assets under management in its private equity, mezzanine, and senior debt businesses. The firm was founded in 1999 and has offices in Boston and New York (www.audaxgroup.com).
“Checkers is a leading manufacturer of branded industrial safety products with an unparalleled reputation for quality and service,” said Geoffrey Rehnert, Co-CEO of Audax Group. “We look forward to partnering with Ray Torres and the rest of the Checkers team to continue growing the business organically and through strategic add-on acquisitions.”
Madison Capital Funding (www.mcfllc.com) and GMB Mezzanine (www.gmbmezz.com) provided financing for the transaction. BB&T Capital Markets (www.bbtcapitalmarkets.com) advised Checkers.
2014 PEPD • Private Equity’s Leading News Magazine • 11-21-14
