Pfingsten Partners has sold Des-Case Corporation ,a provider of contamination control products used in the industrial lubricants industry, to Industrial Growth Partners. Pfingsten acquired Des-Case in October 2013.
Des-Case manufactures desiccant breathers (devices that strip the surrounding air of contaminants—both moisture and dirt—to keep lubricants running clean and dry), fluid handling products such as lubricant storage and filtration systems, and consulting/training services. The company primarily sells through distributors and to OEMs (including private-label programs) but also sells products direct to end user. Des-Case is led by CEO Brian Gleason and is headquartered near Nashville in Goodlettsville, TN (www.descase.com).
During Pfingsten’s ownership, Des-Case completed two add-on acquisitions which expanded the company’s product line and geographic reach. In June 2014 Des-Case acquired the oil sight glass product line of Houston-based ESCO (oil sight glasses are used for the early detection of contamination and oil level problems). In December 2015, Des-Case acquired JLM Systems, a Vancouver, BC-based maker of oil mist adapters and oil sampling products sold under the OilMiser brand name.
“We are a stronger and better run organization because of our partnership with Pfingsten,” said Mr. Gleason. “Pfingsten’s operational resources and culture of continuous improvement helped take our company to the next level.”
Pfingsten invests in middle market manufacturing, distribution and business services companies that have transaction values ranging from $15 million to $100 million and EBITDA between $3 million and $12 million. Since founding in 1989, Pfingsten has acquired 112 such companies through five funds with total commitments of $1.3 billion. The firm is based in Chicago with additional representative offices in India and China (www.pfingsten.com).
“Brian Gleason and the Des-Case management team have done an outstanding job executing their strategic objectives and creating a world-class business with a bright future,” said Scott Finegan, a managing director at Pfingsten.
Industrial Growth Partners, the buyer of Des-Case, provides equity capital to lower-middle market manufacturing and manufacturing services companies with revenues of $30 million to $100 million. The firm invests equity in a range of transactions involving a change of ownership, such as management buyouts, leveraged buyouts, corporate divestitures, recapitalizations and management buy-ins. The firm was founded in 1997 and is based in San Francisco (www.igpequity.com).
Minneapolis-based investment bank Craig-Hallum (www.craig-hallum.com) was the financial advisor to Des-Case and Paul Hastings (www.paulhastings.com) served as legal counsel.
© 2016 Private Equity Professional • 7-8-16
