SloanLED is a manufacturer of light emitting diode (LED) based products that are used in sign and architectural applications (channel letter lighting, lighting for cabinets and boxes, border tubing and accents); lighting systems (retail storefront exteriors and refrigerated display systems for meat, produce, dairy, and other packaged goods); indicator lights (aviation/avionics, industrial controls, electronic instrumentation, and elevators); and spa lighting (includes color-changing LED systems for hot-water spa tubs, lenses, controllers and power supplies). The company was founded in 1957 and entered the LED market in 1970. SloanLED is headquartered in Ventura, CA and has a sales office in The Netherlands (www.sloanled.com).
“We have actively followed the lighting sector for the past few years and believe SloanLED is a strong platform business that is well positioned to become the leading global light emitting diode provider to the commercial and industrial end markets,” said Andrew Brickman, a partner at Baird Capital. Mr. Brickman will join SloanLED’s board of directors along with Baird Capital Operating Partners Scott Hoffman and Dave Schroeder.
JZ Partners (www.jzpartners.com), Golub Capital (www.golubcapital.com) and Hexagon (www.hexagoninc.com) are co-investing alongside Baird Capital in the equity of SloanLED. Senior financing for the transaction is also being provided by Golub Capital.
“Our organization has a long history of creating innovative products for our customers,” said Steve Shotwell, President of SloanLED. “We look forward to building on that experience and partnering with Baird Capital’s operating resources to continue to serve our customers globally.”
Baird Capital, the direct private investment arm of Robert W. Baird & Co., invests in lower middle-market companies in the manufactured products, healthcare and business services sectors. The firm invests from $15 million to $35 million in companies with enterprise values of $25 million to $125 million and EBITDAs greater than $5 million. Baird Capital was founded in 1989 and is based in Chicago (www.bairdcapital.com).
Chicago-based investment bank Lincoln International (www.lincolninternational.com) was the exclusive financial advisor to SloanLED. Lincoln provided advisory services and managed the marketing, negotiation and due diligence phases of the transaction.
According to Mr. Shotwell, Lincoln’s involvement was instrumental in creating a successful transaction. “Lincoln brought a deep understanding of our business model and high growth industry dynamics to the sale process,” he said. “Their hands-on, focused approach and senior-level dedication – coupled with the expert execution of all process details – provided tremendous value to management. Lincoln’s commitment to, and strong advocacy of, the SloanLED story helped produce a great outcome for all involved.”
2015 PEPD • Private Equity’s Leading News Magazine • 5-8-15