LFM Capital has acquired Pratt Industries, a designer and manufacturer of trailers and chassis used in niche applications.
Pratt’s products include intermodal chassis, heavy haul trailers, housing and construction trailers, and logging and mining trailers. According to Pratt, the company’s products are in use in every major trucking fleet in the US and are in service worldwide. The company has exported to Russia, Southeast Asia, The Philippines, South America, Mexico, Africa, Europe, The Caribbean and Canada. Customers of Pratt include operators, leasing companies, and dealers of specialty trailers.
Pratt has three western Michigan-based manufacturing locations: 150,000 sq. ft. in Bridgman, MI; 300,000 sq. ft. in Niles, MI and 50,000 sq. ft. in Stevensville, MI. The company was founded in 1973 by Bill Pratt and his father, Bob Pratt, and is headquartered near Benton Harbor in Bridgman, MI (www.prattinc.com).
“Pratt is an industry leader with strong brand recognition driven by innovative, highly engineered products as well as excellent customer service,” said LFM Managing Director Dan Shockley. “Partnering with the exceptional team at Pratt, we plan to further invest in manufacturing capabilities with a focus on further growing their already robust product offering into new markets. We look forward to supporting what the Pratt team has done so well, while also being a resource to further accelerate growth.”
With the closing of this transaction, Steve Peters has joined the Pratt team to lead the company as CEO. Mr. Peters has 28 years of experience across roles in general management, operations, development and operations, including 13 years at Caterpillar. “I am excited and lucky to join the team at Pratt, where the employees have built a reputation for creating innovative and high-quality products,” said Mr. Peters. “I look forward to leveraging Pratt’s recent facility expansion to identify and execute product opportunities in new markets and for new customers.”
LFM Capital is based in Nashville and invests in US-based manufacturing and industrial services companies that have revenues from $10 million to $100 million and enterprise values from $15 million to $75 million. LFM was formed in May 2014 by Steve Cook, Executive Managing Director; Rick Reisner, Managing Director; and Dan Shockley, Managing Director. The firm closed its first fund with $110 million in capital commitments in October 2014 (www.lfmcapital.com).
“We are proud of what this company has achieved over its more than 40-year history. Pratt has grown from a small designer and manufacturer of intermodal trailers to an industry leader that has created more than 4,000 distinct product builds,” said Bill Pratt. “I was looking for a strong business partner that could help continue Pratt’s growth trajectory and provide day-to-day leadership so that I could continue to focus on product development. I feel confident LFM is the right partner because of their knowledge and experience as well as their focus on building sound and successful manufacturing businesses.”
© 2018 Private Equity Professional | July 18, 2018
