Genstar Capital has agreed to sell the Global Marine and Mobile division of portfolio company Power Products, to Brunswick Corporation (NYSE: BC) for $910 million in cash. Genstar acquired Power Products, a supplier and manufacturer of branded aftermarket electrical systems and components, from Sentinel Capital Partners in December 2016.
Power Products designs, manufactures and distributes a range of electrical products that are used in a variety of aftermarket and OEM applications including electrical construction and maintenance, recreational marine and specialty vehicles, industrial power, and transportation. The company’s products (totaling more than 25,000 SKUs) include harsh-environment power management and conversion products; wire and cable management accessories; and test and measurement devices, switches, and tools.
Power Product operates through two divisions: Global Marine and Mobile (GMM), and Electrical Construction & Maintenance (ECM).
The GMM division is a provider of marine and mobile electrical components and power management systems that are used in recreational boats as well as other recreational, specialty and emergency vehicles. GMM brand names include Ancor, BEP, Blue Sea Systems, CZone, Del City, Lenco Marine, Marinco, Mastervolt, Park Power, Progressive Industries, and ProMariner. The division’s TTM revenues as of March 31, 2018 totaled $233 million.
The ECM division is excluded from this transaction and consists of a portfolio of brands – including Gardner Bender, Sperry Instruments, Bergen Industries, and King Innovation – serving the electrical maintenance and repair, lighting and irrigation markets. The ECM brands are stocked and distributed through North American wholesalers, retailers, catalogs and e-commerce distributors.
Power Products, led by CEO David Scheer, is headquartered in Menomonee Falls, WI with five additional locations in the US, and international operations in China, The Netherlands, New Zealand, and Mexico (www.powerprodllc.com).
“After having worked with David Scheer and his team over the past 18 months to build out and expand the Power Products business, we are pleased that Brunswick recognizes the strength of the Global Marine and Mobile business as well as its future potential,” said Rob Rutledge, Managing Director of Genstar. “Going forward, our partnership with the ECM management team will focus on continuing to invest behind the growth of the ECM platform through continuing to develop industry-leading products and pursuing the acquisition of other leading brands in the ECM space.”
In October 2017, Power Products acquired Las Vegas, NV-based Bergen, a manufacturer of construction and maintenance lighting and other electrical products; and in May 2018, it acquired O’Fallon, MO-based King Innovation, a manufacturer of construction grade electrical and irrigation products for the residential, commercial, utility, irrigation and landscape lighting markets.
“We have worked closely with Genstar to build our marine and mobile business through new product innovation, added acquisitions that dramatically enhanced our global scale, and launched an integrated systems business to deliver value-add design and engineering services to our marine and vehicle OEM customers,” said Mr. Scheer. “With Genstar’s ongoing support, we are well-positioned to continue to grow our ECM business as demonstrated by our two most recent acquisitions, Bergen Industries and King Innovation.”
Genstar invests from $50 million to $400 million in middle-market companies that have enterprise values from $50 million to $1 billion and EBITDAs greater than $15 million. The firm targets investments in the financial services, software, industrial technology, and healthcare industries. Genstar was founded in 1988 and is based in San Francisco (www.gencap.com).
Baird was the financial advisor to Genstar and Weil, Gotshal & Manges provided legal services.
Closing of this transaction is expected in the third quarter.
© 2018 Private Equity Professional | June 29, 2018