Falfurrias Capital Partners has acquired E-Technologies Group (E-Tech), a provider of software and automation systems integration.
E-Tech specializes in automation, information systems, machine safety, machine and process modeling, and system simulations for a variety of customers in the consumer packaged goods, pharmaceuticals, logistics, and food and beverage industries.
The company was co-founded by Steve Veldhuis and Doug Fagaly in 1993 and is headquartered north of Cincinnati in West Chester, OH (www.etech-group.com).
“Steve and Doug have built an incredible success story at E-Tech with a robust company culture that stresses individual ownership and team performance, and the impressive breadth and balance of its service offerings position E-Tech well for future growth,” said Marc Oken, a co-founder and Managing Partner of Falfurrias Capital Partners. “We look forward to working with Steve, Doug and the rest of the team to leverage opportunities to scale the business through organic growth as well as strategic acquisitions that expand its service offerings and market reach.”
E-Tech represents the first platform investment by Falfurrias in the automation market and the firm is seeking to invest additional capital in this sector. Falfurrias’ interest is based on a perceived strong demand from domestic manufacturers in improving the ROI that automation can provide as well as other benefits including improved product quality, reliability, and workplace safety. Typical automation targets will have revenues of $10 million to $50 million.
Falfurrias makes equity investments of at least $3 million in companies with revenues in excess of $10 million and EBITDAs in excess of $2 million. Industries of interest include automation, financial services; consumer products; health care; building products; diversified manufacturing; business services; education, training, and information services; and infrastructure services. Falfurrias was founded in 2006 by Hugh McColl Jr., former chairman and CEO of Bank of America, and Marc Oken, former CFO of Bank of America. The firm is based in Charlotte, NC (www.falfurriascapital.com).
© 2018 Private Equity Professional | February 5, 2018
