Audax Private Equity has completed its acquisition of Ecolab’s equipment care business which specializes in commercial kitchen equipment repairs and maintenance. This transaction was first announced in early October.
The equipment care business (ECB) repairs and services more than 300 OEM brands of commercial kitchen equipment including cooking, refrigeration, warewashing, beverage, holding and preparation appliances and is active with its customers from equipment installation to disposal. Customers include full-service restaurants, quick-service restaurants, hospitality providers, food retailers, institutions and healthcare facilities. ECB services 40,000 locations across 25 states with 500 technicians and 400 subcontractors and distributes 25,000 parts from more than 100 manufacturers, including thermocouples, switches, water filters, gas hoses, oven knobs, thermostats and contactors.
In 2016, ECB had total revenues of $180 million. The group is led by CEO Bill Emory and is headquartered in St. Paul with additional locations in Norcross, GA; Columbus, OH; Dallas and Fort Worth, TX; Hartford, CT; Indianapolis, IN; Louisville, KT; Miami and Tampa, FL; Minnetonka, MN; and Nashville, TN (www.equipmentcare.com).
“Ecolab’s Equipment Care is a leader in the kitchen equipment repair industry,” said Geoffrey Rehnert, Audax’s Co-Chief Executive Officer. “We look forward to working with Bill Emory and the rest of the Equipment Care team to build a leading platform organically and through add-on acquisitions.”
Audax Group makes control investments of $10 million to $100 million in middle market companies with transaction values of $25 million to $500 million. Sectors of interest include industrial manufacturing; energy; outsourced industrial services; consumer products; healthcare devices and services; non-asset based logistics; technology; aerospace & defense; business services; and direct marketing. The firm was founded in 1999 and has offices in Boston, New York and Menlo Park (www.audaxgroup.com).
“We are excited to be partnering with Audax for the next phase of Equipment Care’s growth. Audax provides expertise, resources, and valued experience in the industrials sector that will help us grow through strategic acquisitions,” said Mr. Emory.
Ecolab is a provider of water, hygiene and energy technologies and services. The company’s products and services are used to promote safe food, maintain clean environments, optimize water and energy use and improve operational efficiencies for customers in the food, healthcare, energy, hospitality and industrial markets. Ecolab had total revenues in 2016 of $13 billion. The company has more than 48,000 employees and is headquartered in St. Paul (www.ecolab.com).
Ecolab acquired the equipment care business through its 1998 acquisition of GCS Service.
Ropes & Gray provided legal services to Audax on this transaction.
© 2017 Private Equity Professional | November 3, 2017
